Digital Vouchers 2012

www.evolution-insights.com 1

Digital Vouchers and Coupons in the UK Food & Grocery Market 2012

Evolution Insights LtdProspect House

32 Sovereign StreetLeeds

LS1 4BJTel: 0113 389 1038

http://www.evolution-insights.com

Evolution Insights: Shopper Insight Series

• Evolution offer a range of products & services for clients in the field of shopper research:-

• Off-the-shelf research

– Evolution’s off the shelf research publications deliver affordable insight into shopper motivation and behaviours in UK food, drink and grocery

• Insight Plus

– Insight Plus offers your business the opportunity to engage in any of our regular shopper research projects in advance of publication, tailoring the scope to suit your needs

• Bespoke Consulting

– As publishers of research, we are able to draw upon a wealth of existing proprietary data for consulting projects – helping to better inform and shape any further research requirements.

Evolution is a leading research consultancy specialising in shopper motivation and behaviour. We deliver off-the-shelf, tailored and bespoke research for manufacturers, retailers and agencies.

Further information is available at our website http://www.evolution-insights.com

About Evolution Insights

2

As a leading publisher of shopper research, we are ideally placed to offer your business actionable shopper insight.

Our research and analysis helps clients develop targeted shopper marketing initiatives designed to influence shoppers at the point of purchase.

We use a range of research methodologies to discover genuine insights. Our research incorporates a broad spectrum of robust qualitative and quantitative research techniques.

www.evolution-insights.com


Contents

3

Key findings and executive summary 5 Location-Based Offers 33Key Findings and Executive Summary – What This Report Will Do for You 6 Location-Based Coupons and Vouchers 34Key Findings and Executive Summary – Use of Digital Vouchers 7 Digital Coupons: Methods of Delivery - Summary 35Key Findings and Executive Summary – Technology and Digital Vouchers and Coupons

8 Smartphone Coupons and Vouchers – Benefits, Disadvantages and Applications

36

Coupons and Vouchers – Definition and Drivers of Popularity 9 Smartphone Coupons and Vouchers – Benefits, Disadvantages and Applications: Introduction

37

Coupons and Vouchers – Definition and Drivers of Popularity: Introduction

10 Digital Redemption of Smartphone Vouchers 38

Defining Coupons 11 Smartphone Vouchers and Coupons - Benefits 39Defining Vouchers 12 Smartphone Vouchers - Disadvantages and Issues 40Vouchers and Coupons – a Type of Sales Promotion 13 Mobile Wallets 41The Economic Downturn and Vouchers 14 Mobile Wallets in the UK 42Coupons and Vouchers – Definition and Drivers of Popularity: Summary 15 Security Concerns with Digital Vouchers and Coupons 43Digital Marketing – Coupons and Vouchers 16 Smartphone Coupons and Vouchers – Benefits, Disadvantages and

Applications: Summary44

Digital Marketing – Coupons and Vouchers: Introduction 17 Voucher Sites and Printable Coupons 45Digital Media and Digital Marketing: Definition 18 Voucher Sites and Printable Coupons - Introduction 46Digital Shopper Marketing: Definition and Scope 19 Promotional Agencies and Coupon Distributors 47Digital Shopper Marketing: Benefits 20 Voucher and Coupon Websites 48Digital Shopper Marketing: Where Do Digital Vouchers Fit? 21 Awareness and Use of Voucher and Coupon Websites 49Digital Vouchers and Coupons – Definition and Different Types 22 Proportion of Shoppers Actively Seeking out Different Types of Coupons and

Vouchers50

Coupons Around the World – Asia and the United States 23 How Often do Shoppers Print Coupons or Vouchers out 51Digital coupons: methods of delivery 24 Voucher Sites and Printable Coupons - Summary 52Digital Coupons: Methods of Delivery - Introduction 25 Use of Coupons and Vouchers 53Digital Coupons and Offers: Benefits 26 Use of Coupons and Vouchers - Introduction 54Digital Coupons and Offers: Benefits (2) 27 Finding Vouchers and Coupons for Food and Grocery Items 55Digital Coupons and Offers: Benefits (3) 28 Use of Food and Grocery Coupons 56Digital Coupons: Methods of Delivery 29 Vouchers, Coupons and Codes – Frequency of Redemption and Barriers for it 57Digital Coupons: Methods of Delivery (2) 30 Other Barriers for Coupon Redemption 58Digital Coupons and Vouchers: Methods of Delivery (3) 31 Loyalty Cards and Discount Vouchers Currently Carried Around by the Shoppers 59Digital Coupons and Vouchers: Methods of Delivery (4) 32 How Coupons / Vouchers are Used 60


Contents

4

Price Matching Vouchers at Different Food and Grocery Retailers 61 Opting in to Relevant Offers to a PC (2) 88Supermarkets’ Comparison Systems – Tesco Price Check Usage 62 The Shopper Perspective: Trust, Personalisation and Information Disclosure -

Summary89

Supermarkets’ Comparison Systems – Asda Price Guarantee Usage 63 Methodology 90Supermarkets’ Comparison Systems – Sainsbury’s Brand Match Usage 64 Methodology 91Supermarkets’ Comparison Systems – Waitrose and Ocado Usage 65 Methodology: Quantitative Research - Survey 92Use of Coupons and Vouchers - Summary 66 Methodology: Qualitative Research – Focus Groups 93Technology as a Driver for Digital Coupons and Vouchers 67 Glossary 94Technology as a Driver for Digital Coupons and Vouchers - Introduction 68 Glossary 95Smartphone Penetration Among UK Primary Food and Grocery Shoppers 69 Contact Us 96Ownership and Use of Mobile Phones 70What are Shoppers Using Their Smartphones for 71Tablets and Other Internet Enabled Mobile Devices 72When do Shoppers Look for Vouchers Online 73Technology as a Driver for Digital Coupons and Vouchers - Summary 74Offers Sent to Smartphones: Push and Pull 75Offers Sent to Smartphones: Push and Pull - Introduction 76Push and Pull – Receiving Relevant Offers or Vouchers to a Smartphone 77When do Shoppers with Smartphones Want Coupons / Vouchers Sent to Their Smartphone

78

When do Smartphone Owners Want to Receive Offers to Their Smartphone – Push and Pull

79

When do Smartphone Owners Want to Receive Offers to Their Smartphone – Push and Pull (2)

80

Offers Sent to Smartphones: Push and Pull - Summary 81The Shopper Perspective: Trust, Personalisation and Information Disclosure

82

The Shopper Perspective: Trust, Personalisation and Information Disclosure - Introduction

83

Trust vs. Tailored Offers 84Opting in to Relevant Offers to Mobile Phone 85Opting in to Relevant Offers to Mobile Phone (2) 86Opting in to Relevant Offers to a PC 87


Coupons and Vouchers – Definition and Drivers of Popularity: Introduction

Following the economic downturn shoppers continue to try and find ways to save money where they can. This is re-fuelling the popularity of vouchers and coupons that now come in many forms.

In this chapter we attempt to explain the difference between a coupon and a voucher and explore how shoppers perceive the difference.


Defining Coupons

A coupon I think is the old fashioned term, like

something you’d get in a magazine or newspaper

Shoppers say:

Coupons, as opposed to vouchers, are for FMCG products, and have a one-off use limit, as they represent hard cash. The brand/producer of the coupon is at financial risk from uncontrolled distribution and over-redemption.

The word coupon to me means something that you

cut out of a magazine

A coupon is for a specific item whereas a voucher can be spent on anything usually

I don’t think people really use the word coupon

now

I think a coupon is an advertisement for a product, like 50p off

The industry says:


Defining Vouchers

A voucher is actually like cash, a coupon is

just money off

Shoppers say:

The industry says:

Vouchers usually include offers such as 2 for 1: 2 for £10 or 50% off. Vouchers are issued by the retailer and redeemed at that retailer only. Vouchers are self liquidating; the value of the voucher is built into the retailer’s product margin.

A voucher is something that gets sent to you through the post or something that you

have collected points for. It’s something that you get given

I think you have to buy something to receive a

voucher like on Groupon for example

A voucher is money that you go and spend, a

coupon you have to buy something to get money off


Shopper marketing initiatives

Vouchers and

coupons

Loyalty point rewards

Product information

Recipe suggestions

Competitions

Improving shopping

experience

• At the simplest level digital shopper marketing initiatives share the same characteristics as traditional shopper marketing initiatives, and this aspect can be separated from the way in which the initiative is targeted at the shopper. Initiatives range from coupons, special offers and loyalty rewards to enhanced product information, recipe suggestions and even initiatives that seek to improve the shoppers experience (for example by making their grocery shopping easier).

• Digital coupons and offers are among the best established digital shopper marketing initiatives in the market that are widely available and largely accepted by shoppers. Delivered by e-mail, SMS, websites, smartphone apps and digital kiosks in-store, digital coupons enable marketers to target shoppers with highly personalised content, in turn influencing the shopper’s decision making process.

• Also marketers may benefit from integration of digital coupons and vouchers with other digital shopper marketing initiatives. For example, with the advent of digital media it is possible to link redemption of digital coupons with loyalty schemes, or even directly with digital shopping lists or online baskets.

Digital shopper marketing initiatives can be categorised in the same way as traditional shopper marketing initiatives. Digital vouchers and coupons are therefore just one category of digital shopper marketing initiative.

Digital Shopper Marketing: Where Do Digital Vouchers Fit?

8

Source: Evolution Insights

Shopper marketing initiatives


In spite of the relevance and timeliness of location-based offers, currently only a small proportion (13.4%) of shoppers however say they would like to receive them.

Location-Based Coupons and Vouchers

9

In spite of sharing your location with a coupon / voucher provider not being a great concern to primary food and grocery shoppers (only 26.0% say it concerns them), at the moment not many want location-based coupons and vouchers.

Only 13.4% would like location-

based offers to their mobile


There are still some issues regarding the digital redemption of vouchers and coupons.

Smartphone Vouchers - Disadvantages and Issues

Technology: Approximately half of shoppers still don’t have smartphones which means that using digital coupons alone isn’t profitable for a retailer.

Know-how: Lack of knowledge of how to redeem digital vouchers

Awareness: Shoppers aren’t necessarily aware of vouchers being also digitally redeemable even if they have the technology, i.e. a smartphone required.

Data security: Shoppers may still feel reluctant to give their personal details or don’t feel like they benefit enough from the trade off. Signing up with a voucher site or registration on a retailer site may not seem worth the effort.

Internet connection required: Network coverage issues are possible when internet connection is required for redemption of digital vouchers.

Technical issues: Problems in scanning vouchers can cause delays and frustration


Security Concerns with Digital Vouchers and Coupons

• Just over half (53.1%) of food and grocery shoppers say the security of payments made with a mobile phone concerns them. This, however may change as mobile phone payments, especially ones using NFC (near field communications) technology, become more common.

• Almost half of shoppers (48.3%) also mention being concerned about sharing personal information with a coupon provider even if meant getting more relevant offers. Many coupon and voucher providers require some personal information such as email address a phone number and sometimes even home address when signing up with their service offering.

• Only approximately a quarter of shoppers are concerned about sharing their location with a coupon provider in order to get location-based offers. Location-based offers are becoming more popular and popular providers are Foursquare and Google Offers (in the United States).

About half of food and grocery shoppers admit to having security concerns when it comes to sharing personal information with coupon providers or making payments with mobile phones.

11

Security of mobile

payments 53.1%

Sharing personal information

48.3%

Sharing my location 26.0%

Concerns over:


Voucher Sites and Printable Coupons - Introduction

With the increase in daily deal and voucher websites finding vouchers or coupons is no longer only a question of cutting them out from a newspaper. This chapter focuses on coupons and vouchers in terms whether shoppers actively look for coupons and vouchers and whether they use different websites for finding them.

We also find out what proportion of shoppers actively look for food and grocery coupons and what other kind of coupons and vouchers primary food and grocery shoppers look for and how often they print coupons out.


Just under a half (49.7%) say they have printed out a coupon or voucher in the last month. However, over a fifth have never printed one out.

How Often do Shoppers Print Coupons or Vouchers out

13

Today or yesterday

In the last week

In the last month

In the last 3 months

Less than 3 months

Never0

5

10

15

20

25

5.1

21.423.2

15.214.0

21.1

49.7% of shoppers say they have printed out a coupon / voucher in the last month

When did you last print out a voucher or coupon?

• About a fifth (20.1%) of shopper say they carry paper vouchers in their purse or wallet.

• Over a third of shoppers say they currently carry money off coupons for food and groceries with them.

• Loyalty card scheme related coupons that accumulate extra points were carried with them by almost a fifth (18.6%) of shoppers.

Over a third (38.3%) of shoppers carry money off coupons or vouchers in their purse or wallet.

Loyalty Cards and Discount Vouchers Currently Carried Around by the Shoppers

14

Discount coupons or vouchers for any other service provider

Restaurant discount vouchers

Money off vouchers for other retailers in-store (not food and groceries)

Coupons that accumulate more loyalty points than normally

Money off coupons for grocery items

0 5 10 15 20 25 30 35 40 45

4.0

6.5

8.4

18.6

38.3

Money off vouchers currently in your purse or wallet

Money off vouchers currently in your wallet


Supermarkets’ Comparison Systems – Waitrose and Ocado Usage

15

4.6%

trust

Waitrose Ocado

Less than half of all primary shoppers are aware of either Waitrose or Ocado’s Brand Price Match systems. Only a tiny percentage of shoppers actually trust these Brand Match promises. More advertising needs to be done to raise awareness and create trust for these systems.

n=1007

3.3%

trust


Do shoppers want offers pushed on them or only when requested?

Push and Pull – Receiving Relevant Offers or Vouchers to a Smartphone

Pull refers to shoppers requesting something, in this case offers delivered

to their smartphone, through a marketing

channel.

Push refers to information, in this case

offers to smartphone, being delivered without

request toward the shopper.

Methodology

17www.evolution-insights.com


Secondary and desk research

Preliminary quantitative survey

Main quantitative surveyFocus groups

Insights

• Evolution carried out a preliminary survey of around 100 shoppers to test questions for the main survey.

• Detailed secondary and desk research is conducted to define the topic area, macro drivers and trends, scope and examples within the research topic.

• Initial insights gained are used to help further design the main survey.

• A main survey is completed by at least 1,000 UK adults who are the primary household shopper for food & grocery.

• Focus groups are carried out to further enhance the secondary research and main quantitative survey.

• Comprehensive and detailed assessment of all the data received was then used to uncover insights.

• Throughout this process, primary research was supported by secondary research drawing on Evolution’s proprietary databases, national statistics, news and industry resources.

Methodology

18

Evolution’s methodology


Methodology: Quantitative Research - Survey

19

Types of vouchers / coupons shoppers actively look for

Trust and giving out personal information

Printable coupons / vouchers

How vouchers are used and opting in to offers

Awareness of voucher and coupon websites

Technology and data security concerns

Voucher redemption and barriers to it

Brand loyalty vs. coupons / vouchers

Ownership and usage of technology

Preferred retailer offline

Demographic profiling

Topics of questions in quantitative survey

• Detailed shopper insights were gained from a survey of 1,065 primary shoppers. The samples were fully representative of the UK population.

• The survey contained 20 questions relating to topics outlined to the left – in addition to standard demographic profiling questions

• The questions were designed to give maximum insight into shopper’s motivation and behaviour

• Additional questions were asked to give further insights into general behaviour and attitudes into price comparisons.

• The survey was carried out during the week commencing 18th June 2012.


Focus Group Participants

Gender Age Socio-economicNumber of children in household

Female 20-29 C2 2Female 30-39 D 3Female 30-39 C1 2Female 40-49 D 1Female 20-29 C2 1

• 2 focus groups was conducted on the 12th June 2012 with primary shoppers to gain further insight into comparison behaviour.

• The subjects covered were:-

– Printing vouchers– Discount codes– Trust with personal

information– Timing of receiving

vouchers– Smartphones and vouchers– Redeeming vouchers

Methodology: Qualitative Research – Focus Groups

List of focus group participants

Focus Group Participants

Gender Age Socio-economicNumber of children in household

Female 20-29 AB 0Female 30-39 AB 0Female 30-39 C1 0Male 30-39 AB 0Female 20-29 C2 0


Glossary

21


Glossary

22

ABC1C2DE – Socio demographic profile using job type (if applicable).App – A smartphone applicationCashback – money shoppers can claim backCoupon – Coupons are for FMCG products, and have a one-off use limit, as they represent hard cash. The brand/producer of the coupon is at financial risk from uncontrolled distribution and over-redemption. Demographic – Characteristics of the population (including sex, race, age and income).Digital media – digital marketing medium for example social media, mobile, digital signage.Digital shopper marketing – Shopper marketing that utilises digital mediaDSM – Digital shopper marketingEconomic climate - the general condition of the economy in a particular country or in the worlde-retailer/e-tailer – a retailer which trades online.FMCG – Fast moving consumer goods, often used to refer to a manufacturer.Food and grocery - Foodstuffs and various household suppliesInternet enabled mobile device - e.g. an internet tablet or and internet enabled music player (not a mobile phone)Location-based offers – relevant and timely offers usually accessed by smartphones to nearby services or productsMicrosite – Internet website dedicated to a particular brand, using a different (branded) URLMobile wallet - allows users to make electronic commerce transactions quickly and securely using a mobile phoneNew technology – Modern and up-to-date technologyOpt in – permission for receiving marketing messages or offers given by a shopper / customerPrimary shopper – the main shopper in a household.Promotion – Discounts and offersPull - refers to shoppers requesting something, in this case offers delivered to their smartphone, through a marketing channel

Push refers to information, in this case offers to smartphone, being delivered without request toward the shopper Redemption rate – the amount to which something is used, typically a voucher.Shopper context – Evolution’s model for determining the profile of an individual shopper.Shopper marketing – Any marketing activity aimed at the shopper throughout their path to purchase.Smartphone – An internet enabled mobile phone device that runs applications (‘apps’).Smartphone coupon – coupon that is sent to or accessed with a smartphone and can be either digitally or manually redeemedSocio-demographic - Characteristics of the population (including sex, race, age and income).Technologically savvy – someone who is up-to-date with and uses technology regularly.URL – Uniform resource locator (web standard for internet website addressing)Voucher - Vouchers are issued by the retailer and redeemed at that retailer only. Vouchers are self liquidating; the value of the voucher is built into the retailer’s product margin.

© Evolution Insights Ltd. All rights reserved

Contact Us

Evolution Insights Ltd

Prospect House32 Sovereign Street

LeedsLS1 4BJ

Telephone: 0113 336 6000

e-mail: [email protected]

Web: http://www.evolution-insights.com

Company No. 07006001Country of Incorporation: United Kingdom

23

Date post:	28-Jan-2015
Category:	Documents
Upload:	evolution-insights
View:	109 times
Download:	1 times

Digital Vouchers 2012

Documents