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In the last year, shopping has shifted substantially from physical stores to online for food, health & beauty care products, and household goods. There are consumers with a preference to shop either in-store or online for these product categories, while others do both as omni-channel shoppers. At times, deciding to shop one channel over another is about saving money; in other instances, maximizing time is the priority.

Perhaps this shift is to be expected. With increased options for shopping and evolving consumer preferences, there is no one-size-fits-all path to purchase. Households have different needs as consumers are in various life stages, doing their best to manage demands on their

schedule and budgets — working outside of the home, caring for children, or in some cases, another adult.

Even as technologies are introduced and existing tools are enhanced, coupon usage remains a relevant practice. Consumers continue to include paper coupons as part of their planning and shopping journeys. This is also true for millennials, who are heavy users of coupons from both paper and paperless sources. These usage trends reinforce that millennials continue to be a crucial consumer segment for marketers to understand.

As the empowered shopper’s expectations and life-stage needs evolve, personalized experiences from brands are a must, making real-time engagement vital to capturing consumer attention and inspiring activation.

This report highlights shopping and saving behaviors associated with those shopping for traditional consumer packaged goods (CPG) categories including food, household (HH) goods, and health & beauty care (HBC) products.

E X E C U T I V E S U M M A R YT A B L E O F C O N T E N T S

E X E C U T I V E S U M M A R Y . . . . . . . . . . . 2

E M P O W E R E D S H O P P E R S . . . . . . . . . 3 M A N A G I N G M U L T I P L E P R I O R I T I E S . . . . . . . . . . . . . . . . . . . 4 S H O P P E R P R O F I L E S . . . . . . . . . 6 S H O P P I N G F O R F O O D I T E M S . . . . . . . . . . . . . . . . . . . 7 S H O P P I N G F O R H O U S E H O L D G O O D S . . . . . . . . . . 8 S H O P P I N G F O R H E A L T H & B E A U T Y C A R E P R O D U C T S . . . . . . . . . . . . . 9 T H E O N L I N E G R O C E R Y S H O P P E R . . . . . . . . . . . . . . . . . . . . . . 1 0 T R I E D - A N D - T R U E & N E W E R A P P R O A C H E S T O P L A N N I N G . . . . . . . . . . . . . . . . 1 3 W H A T E M P O W E R E D S H O P P E R S W A N T . . . . . . . . . . . . 1 5

C O U P O N T R E N D S . . . . . . . . . . . . . . . . . 1 6 C O U P O N U S E & F R E Q U E N C Y . . . . . . . . . . . . . . . . . . 1 7 C O N S U M E R C O U P O N P R E F E R E N C E S . . . . 1 8 P A P E R & P A P E R L E S S C O U P O N U S E . . . . . . . . . . . . . . . . . 1 8 C O U P O N W E B S I T E S & M O B I L E S A V I N G S A P P S . . . . 2 0 R E C O N C I L I N G C O N S U M E R C O U P O N U S E W I T H C O U P O N I N D U S T R Y T R E N D S . . . . . . . . . . 2 1

C O N C L U S I O N . . . . . . . . . . . . . . . . . . . . . . 2 2

Valassis audience segmentation: Millennial: born 1982–2000 | Generation X: born 1965–1981 | Baby Boomer: born 1946–1964 | Parent: has child(ren) under age 18 in HH

Shopper-friendly technology and the

resilience of coupons have empowered today’s

busy consumers to obtain value no matter where or

how they shop.

Published March 2019 | 2


2K19 VALASSIS COUPON INTELLIGENCE REPORT

E M P O W E R E D S H O P P E R S

In my household, at least one person spends over 50 hours per week working & commuting

My weekends are just as busy as my weekdays

Work and/or family demands make it difficult for me to get shopping, home tasks & errands done

I sometimes need to spend more money in order to save time, because of my busy lifestyle

I plan my shopping & make purchases at various times throughout the day to fit into my busy schedule

B U SY, M O D E R N H O U S E H O L D S & S H O P P E R S

Base: All Respondents % Who Strongly + Somewhat Agree

29%

37%

48%

35%

42%

ALL CONSUMERS PARENTS

63%

52%

60%

69%

66%

MILLENNIAL PARENTS

59%

68%

68%

68%

74%

MILLENNIALS

54%

55%

46%

53%

59%

Except where otherwise noted, percentages shown in bold font indicate significantly higher or lower vs. all respondents (95% confidence level)

These consumers are confident in what they want — whether shopping online or in a physical store, expectations of personalized, frictionless purchase experiences abound. Even with multiple tools at their disposal, shoppers are busier than ever — especially parents and millennials. Among households with children, many work outside of the home and/or provide care for another adult:

For almost half of consumers, weekends are just as busy as weekdays: 29% indicate that work and/or family needs make it difficult to complete their shopping, household tasks and errands. Additionally, 37% are spending over 50 hours each week working and commuting to/from work. Not surprisingly, parents, millennials and millennial parents are all significantly more inclined to be experiencing these time demands.

39% both parents are working

outside of the home37% have a two-parent

household, withone stay-at-home parent

14% are a single/ divorced parent

working outside of the home12% are caring

for a sick,disabled or elderly adult

Modern shoppers are empowered with access

to more information than ever and a bevy of tools to enable the

purchase process.

M A N A G I N G M U L T I P L E P R I O R I T I E SE M P O W E R E D S H O P P E R S


Return to table of contents


MILLENNIALSMILLENNIAL

PARENTS

When necessary, today’s consumers are willing to spend more money in order to save time. It appears that having more choices for making purchases has helped shoppers feel they can better balance their work and life demands, and ultimately, feel more empowered. For example, shopping at stores specifically due to the convenience-oriented products and services offered has increased compared to last year.

Services offered such as delivery/pickup (increased vs. last year)

Products offered such as prepared foods/meals (increased vs. last year)

ALL CONSUMERS PARENTS DADS

25%

28%

65%

65%

63%

66%

43%

48%

Base: All Respondents

W H Y I S H O P AT S P E C I F I C ST O R E S

50%

51%

More than two-thirds of those surveyed feel they

have a somewhat or very manageable work-life balance.

Surprisingly, more than half of parents, dads and millennial parents claim to have a

very manageable work-life balance. Perhaps one can assume access to time-saving tools

helps to make this possible amid all the daily requirements of their time.


Very manageable work-life balance

Somewhat manageable work-life balance

Somewhat time-pressured

Very time-pressured

Retired/no one within the household working

W O R K- L I F E B A L A N C E

Base: All Respondents Figures may not sum to 100 due to rounding

ALL CONSUMERS PARENTS MOMS DADS

MILLENNIAL PARENTS MILLENNIALS GEN XERS

BABY BOOMERS

43%

30%

10%

3%

15%

53%

29%

12%

5%

1%

46%

33%

14%

6%

1%

61%

25%

10%

4%

-

60%

26%

10%

4%

-

47%

36%

12%

3%

3%

45%

35%

12%

4%

5%

39%

23%

8%

1%

29%


M A N A G I N G M U L T I P L E P R I O R I T I E S


MOMS

34%

36%



S H O P P E R P R O F I L E S

I N - ST O R E S H O P P E R

Does all or most of their shopping

in a store

• Skews baby boomers• Skews female (for food & HH goods)• Average HH income $71,700

Approx. 40% of in-store shoppers are baby boomers; approx. 25% are gen Xers and approx. 25% are millennials

O N L I N E S H O P P E R

Does all or most of their shopping

online

• Skews millennials & gen Xers• Approx. 20% are Hispanic• Skews male (for food & HH goods)• More likely to have children in HH• Average HH income $81,800

42-48% of online shoppers are millennials and 33-36% are gen Xers

O M N I - C H A N N E L S H O P P E R

Does half of their shopping online and

the other half in a store

• Skews millennials• 12% are Asian (for HH goods)• Skews parents (for HBC products)• Average HH income $75,600

Approx. 40% of omni-channel shoppers are millennials and 26-29% are gen Xers

As initially defined in the 2K18 Valassis Coupon

Intelligence Report*, when shopping for food, household

goods, and health & beauty care products, the profiles of the modern, empowered

shopper are as follows

In-store shopper (All + Most)

I do all of my shopping for this category in a store

Online shopper (All + Most)

I do all my shopping for this category online Omni-channel shopper**

Not a shopper

W H E R E I S H O P2018 2019

F O O D

73%

54%

18%

14%

N/A

3%

63%

46%

26%

21%

N/A

3%

Base: All Respondents Percentages shown in bold font indicate significantly higher or lower vs. prior year (95% confidence level) **Note: insufficient sample size to report on the omni-channel food shopper

61%

38%

21%

10%

14%

4%

52%

29%

29%

15%

15%

4%

H H G O O D S2018 2019

57%

33%

20%

11%

18%

5%

47%

26%

28%

17%

21%

5%

H B C P R O D U C T S2018 2019When comparing this data year-over-year,

the percentage of consumers doing all or most of their shopping for CPG items in a store has decreased. As may be expected, there has been an increase in consumers shopping for these purchases online, including a substantial increase in those who are doing all of their shopping for these categories online. Omni-channel shopping has held steady.


*Data has been updated to reflect the latest figures



A recent study found that for shoppers who have not purchased food and beverages online, it’s because they prefer an in-person experience, find it more convenient, or have uncertainty as to which online retailers would be the best.1

However, shopping for food online has shifted for consumers considerably in the last year —

It’s not just non-perishable purchases driving growth in online food shopping. According to research from Retail Feedback Group (RFG), consumers are increasingly buying fresh category items including deli meat/cheese, seafood, meat, bakery, prepared foods and meals online.2 This indicates shoppers are becoming more open to trying online options to obtain their perishable food items.

More than half of consumers (63%) still

make all or most of their food purchases in-store.

S H O P P I N G F O R F O O D I T E M SE M P O W E R E D S H O P P E R S

Whether valuing selection or convenience, many consumers shop at stores for specific experiences. This is especially true of millennial parents and parents (particularly dads) looking to make their purchases at local, neighborhood stores and access organic groceries.

D O E S T H E I N - S T O R E E X P E R I E N C E M A T T E R ?I try to shop at local, neighborhood stores (Strongly/Somewhat Agree) I shop at stores such as dollar stores, drug stores, convenience stores because I can quickly find what I need (Strongly/Somewhat Agree) My shopping at stores that focus on organic/natural/fresh products has increased vs. last year

27%

56%

47%

63%

51% 64%

67%

68%60%


DADSMILLENNIAL

PARENTS

60%

61%

43%

MILLENNIALS

73%

70%

64%


26% of consumers shop for food online, an increase of eight percentage points vs. a year ago 21% of respondents indicated they do all of their

food shopping online (up from 14% a year ago)



36%

59%

51%

MOMS


Among consumers who shop for HH goods online, the appeal of this channel is the expectation of a large selection (71% of respondents) and saving time (67%). Other benefits of online shopping include lower prices and ease:

Despite these reported advantages, shopping online isn’t without its downsides. More than half of consumers (55%) say they find it frustrating when they cannot use coupons or discounts when shopping online for household goods. Fifty-three percent also miss the sensory experience of touching and smelling products before purchase.

Consumers want a seamless experience whether shopping in-store or online. Knowing that the majority of online HH goods shoppers are frustrated about their inability to use coupons online is something retailers and manufacturers cannot afford to ignore.

S H O P P I N G F O R H O U S E H O L D G O O D SE M P O W E R E D S H O P P E R S

49% are willing to pay more to shop online

if it means they will save time

Nearly 30% of shoppers purchase household (HH)

goods online; with 15% doing all of their shopping

online for these items.

64% shop online – it’s easier

than shopping in-store63% shop online as long

as they are able toreturn an item they do not like

55% shop online because they

experience lower prices




Since last year, there has been a substantial rise in

online shopping for health & beauty care (HBC) products.


Increasing 8 percentage points from 2018, the number of consumers doing all or most of their HBC product shopping online is now at 28%, while the percentage of consumers shopping for this category in-store has declined. Seventeen percent of consumers do all their HBC products shopping online and 26% are doing all of their shopping in-store.

It may be helpful to understand the motivating factors behind consumers’ growing preference for shopping online for their HBC needs. According to online HBC shoppers (see figures below):

HBC products, however, aren’t always the easiest products to buy online. For 64% of those shopping online for these products, it can be difficult to view shades of color. Additionally, 56% miss the in-store experience of touching and smelling these items before purchase. Looking to save money, 53% find it frustrating when they cannot use coupons or discounts online for HBC category purchases.

S H O P P I N G F O R H E A L T H & B E A U T Y C A R E P R O D U C T S

71% shop online for large selection

of products available67% shop online as long

as they are able toreturn an item they do not like

61% shop online - it’s easier

than shopping in-store72% shop online to

save time; 48% willing to pay more to do so

55% shop online because they

experience lower prices




Buying groceries online is growing in acceptance, perhaps due to new and improved technologies and services that empower shoppers, adding the benefits of saving time and money along the way. In fact, Nielsen and Food Marketing Institute (FMI) project that in five to seven years, 70% of consumers will be grocery shopping online.4

With this in mind, let’s take a look at a specific type of consumer within this research — the online grocery shopper.

Not to be confused with the online food shopper, the online grocery shopper is defined as a consumer who orders groceries (including food, HH goods and HBC product category purchases) online and either picks them up or has them delivered from local grocers through a service such as Shipt or Instacart, or websites such as Peapod, AmazonFresh or Jet.com.

Although ecommerce comprised only 5% of all grocery sales in

2018 (compared to 10% of all retail sales), grocery & CPG

ecommerce is poised for growth.3


T H E O N L I N E G R O C E R Y S H O P P E R

Perhaps as expected, these shoppers tend to be millennials and younger gen X consumers. They also skew male, have children in the household and are more likely to be Hispanic.

P R O F I L E O F T H E O N L I N E G R O C E R Y S H O P P E R

O N L I N E G R O C E RY S H O P P E R

Orders groceries online including food, HH goods &

HBC product purchases

• Skews millennials & gen Xers• 22% are Hispanic• Skews male• More likely to have children in HH• Average HH income $80,900

77% of online grocery shoppers

are between the ages of 18 and 44

Delivered to home from local grocers through a service such as Shipt or Instacart

O R D E R S O N L I N E

For home delivery from websites such as Peapod, AmazonFresh or Jet.com


From local grocer and picks it up




17%: 18-2434%: 25-3426%: 35-44


50%

51%

46%

40%

37%

40%

Select paper/printed coupons to take with me on my shopping trips

Look at printed store circulars/ads for specific retailer(s) I am going to shop

Look at printed store circulars/ads to decide which retailer(s) to shop

I look at online circulars/weekly ads for specific retailer(s) that I plan to shop

I look at online circulars/weekly ads to decide which retailer(s) I am going to shop

Load electronic coupons onto a loyalty or frequent shopper card

Always + Very Often

ALL CONSUMERS

ONLINE GROCERY

SHOPPERS

59%

63%

62%

62%

60%

60%

Regardless of being busy with work and household responsibilities, 52% of online grocery shoppers feel they have a very manageable work-life balance. When describing their family, online grocery shopping parents shared the following:

The lifestyle, life stage and psychographics

of these shoppers may shine a light on their

motivation to shop online.


39% both parents are working

outside of the home36% have a two-parent

household, withone stay-at-home parent

13% are a single/ divorced parent

working outside of the home17% are caring

for a sick, disabled or elderly adult

When it comes to finding savings, the online grocery shopper is no amateur. In fact, their coupon usage is significantly higher than that of the average consumer, with 65% always or very often using coupons (vs. 45% of all consumers). Online grocery shoppers use both print and digital sources to find value and plan what and where they will buy.

15%

15%

16%

From a local grocer and pick them up at the store

Delivered to home from a local grocery store through services such as Shipt, Google Express or Instacart

Home delivery from websites such as Peapod, FreshDirect, AmazonFresh, Jet.com

Doing this once or several times a week

ALL CONSUMERS

ONLINE GROCERY

SHOPPERS

41%

42%

41%

O R D E R G R O C E R I E S O N L I N E

Whether obtaining groceries through home delivery or pickup, shoppers are using multiple methods for ordering.





W H E N S H O P P I N G F O R G R O C E R I E S , W H I C H I S M O ST I M P O R TA N T T O YO U ?

Ranked 1st or 2nd in Importance

80%

64%

33%

24%

To save the most money by going to a store with the lowest prices

To save the most money by using coupons and discounts

To use the easiest, most convenient way to shop

To save time through the fastest shopping method

ALL CONSUMERS

ONLINE GROCERY

SHOPPERS

76%

68%

28%

28%

Online shoppers have prioritized what they value

most as saving money – either by finding a store

with low prices or by finding coupons/discounts

to help them save.

ONLINE GROCERY

SHOPPERS

66%

66%

65%

61%

59%

Shopping online has the largest selection of products

I shop this way because it saves the most time

This way of shopping is easier than shopping in a store

I am willing to spend more to shop this way due to the convenience and time I save

This way of shopping is less expensive than shopping in-store

Strongly + Somewhat Agree

In addition to perceived savings, the convenience,

product selection and ease of experience

are what make shopping online for groceries

appealing to these consumers.


O N L I N E G R O C E RY S H O P P E R S perceive drawbacks to this shopping method. Below is an overview of their frustrations in particular:

62% find it frustrating when they can’t use coupons or discounts

62% are uncomfortable having someone else pick out their produce or other perishable items

64% miss the sensory experience of touching and smelling produce

Shoppers value saving money and time, regardless of whether they are shopping in-store or online. However, using coupons to save money is a significantly higher priority for the online shopper, as is saving time. N O T E T O M A R K E T E R S :

When faced with having to choose between coupons/lower prices and convenience, shoppers selected coupons & savings.





Over 60% of shoppers say they are constantly planning what to buy and keep an ongoing list of some sort. Although most shoppers are still making a handwritten list before shopping, the latest in digital tools and smart technology provides consumers with additional ways to plan their spending:

Shopping behaviors are evolving as 59% of consumers perceive the way they shop as being dramatically different from the way their parents used to shop. This perspective is likely due to widely available technologies including smartphones and mobile apps. Parents and millennials are utilizing these devices to plan their shopping trips and find the best deals. However, even with the advent of smart technology, consumers are saying they need better solutions to save more money (46%) and save more time (39%) shopping.

Parents, although busy, make the time to find value. Their smartphones and other mobile devices are put to good use to save across categories. As consumers adopt newer options such as scanning products for purchase while shopping, retailers and brands can make a big impact with parents — especially dads and millennial parents — by offering them savings at their fingertips.

PA R E N T S : T E C H - S A V V Y S H O P P E R S

Today’s shopper uses a combination of

traditional and new approaches when it

comes to planning their shopping trips and

purchases.

T R I E D - A N D - T R U E & N E W E R A P P R O A C H E S T O P L A N N I N G



to make their grocery lists26% always or very

often use websites 24% always or very often look at their shopping

history at a retailer online24% use shopping

list apps atat least once a week

22% always or very often make a shopping list

using a connected home device

Order groceries online from a local grocer and pick them up at the store Order groceries online and have them delivered to my home from a local grocery store through services such as Shipt, Google Express or Instacart Order groceries online for home delivery from websites such as Peapod, FreshDirect, AmazonFresh, Jet.com Use a smartphone app to scan barcodes as I shop

16%

15%

15%

PARENTS

31%

31%

MOMSMILLENNIAL

PARENTS

18%

21%

21%31%

Base: All Respondents Doing this once or several times a week

DADS

43%

40%

42%

40%

40%

44%

ALL CONSUMERS

20% 37% 28% 45% 44%



Consumers want to shop where they can get the best savings,

checking a variety of sources for coupons and discounts before loading

up their virtual or in-store shopping cart. Stretching the budget remains

as important as ever with most shoppers looking at printed or online

store circulars, searching online for coupons and selecting paper or printed coupons to take with them

before hitting the stores.

P L A N N I N G T O S H O PE M P O W E R E D S H O P P E R S

Select paper/printed coupons to take with me on my shopping trips

Look at printed store circulars/ads for specific retailer(s) I am going to shop

Look at printed store circulars/ads to decide which retailer(s) to shop

I look at online circulars/weekly ads for specific retailer(s) that I plan to shop

I look at online circulars/weekly ads to decide which retailer(s) I am going to shop

Search for coupons online Load electronic coupons onto a loyalty or frequent shopper card

Base: All Respondents Always + Very Often

46%

50%

51%

40%

38%

ALL CONSUMERS

60%

61%

61%

60%

65%

PARENTS

71%

69%

71%

74%

68%

MILLENNIAL PARENTS

51%

50%

51%

52%

51%

MILLENNIALS


W H E N P R E PA R I N G F O R A G R O C E RY S H O P P I N G T R I P, H O W O F T E N D O YO U D O T H E F O L LO W I N G ?

37%

40%

59%

58%

70%

67%

49%

50%

Furthermore, access to deals via mobile devices and the availability of coupons affects store choice and channel shopped. Consider this: approximately 25% of consumers do not shop online because they can neither use coupons nor take advantage of in-store deals.

69% decide where to shop based on where they can utilize paperless discounts (received on their smartphone, mobile device or shopper/loyalty cards)

58% use stores’ mobile savings apps to decide where to shop



Today’s shoppers are willing to shop at multiple stores to find the best prices (85%) or switch stores to take advantage of weekly specials (82%). For 35% of consumers, their willingness to shop at different stores for savings has increased in the last year. This is especially true of younger consumers, parents and online grocery shoppers.

Empowered shoppers are enabled by technology and influenced by coupons, but they want more options for better shopping experiences. Parents and millennials have increased their shopping at certain stores specifically because they offer delivery/pickup services or specialty products.

Consumers also desire flexibility and ease when it comes to securing savings. Twenty-seven percent would use more coupons if it was easier to use them when shopping online. Additionally, over one-third of shoppers would use more coupons if they were able to use them in any store or online. This view is even more likely to be shared by multiple consumer segments:

W H A T E M P O W E R E D S H O P P E R S W A N T



The key to increasing engagement with shoppers lies in offering flexibility and seamless experiences, regardless of how consumers choose to shop and save. It’s essential to get this part of the equation right. Consumer demand for flexibility in planning, shopping and saving will likely continue to grow in the years ahead.

N O T E T O R E T A I L E R S :

The shopper journey is enhanced by coupons.

89% say using coupons saves

them a lot of money 86% are influenced by coupons to

both choose among the brandsthey typically buy and try new products


DADS PARENTSONLINE

GROCERY SHOPPERS

MILLENNIAL PARENTS

45% 44% 42% 42%

I would use more coupons if I could use them in any store or online



C O U P O N T R E N D S


C O U P O N U S E & F R E Q U E N C Y

The empowered shopper is motivated to save, seeking

and using coupons from traditional & digital sources.

Overall coupon usage is similar to the prior year — a majority of shoppers are still using coupons. Regarding frequency of use, there has been a significant year-over-year

increase in the percentage of millennials that always use coupons.

Ever use

Always + Very Often

Always

Very Often

Sometimes

Rarely

Never/Not sure

O V E R A L L C O U P O N U S E & F R E Q U E N C Y

Base: All Respondents Figures may not sum to 100 due to rounding Percentage shown in bold font indicates significantly higher vs. prior year (95% confidence level)

19%

94%

46%

27%

39%

2017

9%

6%

2018

21%

95%

50%

29%

31%

14%

6%

2019

30%

94%

53%

23%

30%

11%

6%

MILLENNIALS

Ever use

Always + Very Often

Always

Very Often

Sometimes

Rarely

Never/Not sure

O V E R A L L C O U P O N U S E & F R E Q U E N C Y

Base: All Respondents Figures may not sum to 100 due to rounding

15%

90%

43%

28%

36%

2017

12%

10%

2018

15%

94%

45%

30%

36%

14%

6%

2019

19%

92%

45%

26%

32%

15%

8%

ALL CONSUMERS




Received in the mail, in a store, from coupon books received in the newspaper/mail, or those printed from my computer In the mail In a store From newspaper coupon books/coupon books received in the mail From my computer

Base: All Respondents Ever Use

MILLENNIAL PARENTSDADSPARENTS

ALL CONSUMERS MILLENNIALS GEN XERS

BABY BOOMERS

91%

88% 87%

87%

79%

95%

92% 92%

91%

86%

94%

94% 93%

94%

92%

96%

93% 94%

93%

89%

92%

87%

89%

86%

80%

89%

86%

83%

84%

75%

93%

91%

91%

90%

83%

I U S E PA P E R C O U P O N S MOMS

95%

90% 91%

89%

80%


C O N S U M E R C O U P O N P R E F E R E N C E S


Providing consumers with multiple options for saving money is important — though more consumers have adopted paperless discounts over the past couple of years, printed formats remain among the top preferred ways to receive coupons and discounts.

While paper coupons still lead in preference when compared to other types

of coupons, there has been significant growth in

preference for paperless discounts over the

past two years.

I prefer to get coupons in the mail

I prefer to get coupons from a coupon book found in a newspaper

I prefer to get paperless discounts from the internet I can download onto my store shopper/loyalty card

I prefer to get paperless discounts on my smartphone/mobile device

I prefer to print coupons from the internet

P R E F E R R E D S O U R C E S O F C O U P O N S & D I S C O U N T S


37%

44%

37%

32%

2017

35%

2018

39%

48%

42%

36%

35%

2019

42%

50%

44%

38%

34%

ALL CONSUMERS

Significant increase in preference for all methods (2019 vs. 2017) with the exception of print coupons from the internet

P A P E R & P A P E R L E S S

C O U P O N U S EPaper coupon usage continues to represent a larger share of

use than paperless. Of note is the use of paper coupons by parents and millennial parents. Parents, especially dads, are more

likely than all consumers to use paper coupons of all types.




P A P E R & P A P E R L E S S C O U P O N U S EPaperless coupons,

received on a mobile device or downloaded onto a

store shopper/loyalty card are more likely to be used by parents,

millennial parents, millennials and gen Xers (in comparison to all consumers).

I U S E PA P E R L E S S D I S C O U N T S


ALL CONSUMERS

75%PARENTS

92% 96%

MILLENNIAL PARENTS MILLENNIALS

88% 64%

BABY BOOMERSGEN XERS

83%

Paperless coupon usage has held steady compared to last year, with 75% of consumers utilizing these types of savings. Consumers are using a variety of ways to manage the paperless discounts they’ve downloaded before applying them to purchases. Among users of paperless discounts:

• 30% use a mobile app

• 23% make a list on their phone and check it while shopping

• 23% plan their shopping list around paperless discounts

PA P E R L E S S D O E S N ’ T M E A N M E T H O D L E S S


Coupon or promotion codes I can scan from print ads with my smartphone/mobile device to receive paperless discounts Receipts I can scan with my smartphone/mobile device to receive cash back/points Paperless discounts linked to a digital wallet/account that can be used at any retailer Paperless discounts linked to my smartphone/ mobile device payments

In-store deal notifications I receive on my smartphone/ mobile device while shopping

21%

27%

27%

PARENTS

29%

25%

MOMSMILLENNIAL

PARENTS

29%

30%

35%30%

Base: Users of paperless discounts

DADS

27%

29%

25%

28%

24%

22%

ALL CONSUMERS

19% 25% 22% 28% 32%

MILLENNIALS

33%

30%

23%

27%

21% 22%28% 32%34% 31%

Which of the following ways for receiving paperless discounts you receive on your smartphone/mobile device and/or download onto your store shopper/loyalty card are you most likely to use?




C O U P O N W E B S I T E S & M O B I L E S A V I N G S A P P S


Mobile savings app use has remained consistent since 2017, with growth in the use of grocery/drug/mass store apps. Generationally, a higher percentage of millennials and gen Xers are users of websites and savings apps, while baby boomers are less likely to do so.

Grocery/drug/mass store and/or supercenter savings app

Coupon app

Cash back/points app

In-store shopping rewards app

Shopping list app

Deal comparison app

M O B I L E S AV I N G S A P P S




BABY BOOMERS

56%

47%

44%

40%

35%

34%

83%

78%

76%

71%

66%

64%

79%

70%

71%

68%

63%

62%

92%

85%

89%

85%

82%

81%

32%

22%

15%

13%

9%

8%

66%

57%

52%

46%

38%

37%

Store websites

Manufacturer/brand websites

Coupon websites

Search engines

Links from savings sites/blogs

Social networking websites

C O U P O N W E B S I T E S




BABY BOOMERS

71%

70%

68%

67%

61%

50%

88%

88%

90%

89%

86%81%

80%

77%

79%

81%

76%73%

92%

91%

94%

94%

91%88%

61%

59%

53%

51%

41%23%

81%

82%

80%

78%

74%64%

These trends in paper and paperless coupon usage are a reminder of the continued importance of a cross-channel approach to promotional media, as also substantiated by Scarborough data.5

Consumers turn to a variety of websites & mobile

savings apps to find deals.

Print media: mail, magazines, Sunday and weekday newspaper Digital media: email, text, QR code, internet sites/apps Loyalty cards: preferred customer card

*Select ways you/other household members usually obtain coupons

USE PRINT COUPONS

51%USE DIGITAL

COUPONS

39%USE LOYALTY

CARDS

26%

O V E R A L L C O U P O N U S A G E *

69% SAVE MONEY WITH PRINT, DIGITAL MEDIA AND/OR LOYALTY CARDS



R E C O N C I L I N G C O N S U M E R C O U P O N U S E W I T H C O U P O N I N D U S T R Y T R E N D S



And yet consumers report their ongoing use of coupons, their pursuit of additional savings and the impact these values have on their shopping and saving behaviors.

Why the potential disconnect? This could be a continuation of the shift we’ve seen for some time: the sheer number of options to save may make it more complicated to understand consumers’ interest in coupons — since any one channel might only contribute a small portion of redemptions. As CPG marketers respond to these newer (and expanded) ways that consumers plan, shop and save, their promotional budgets are spread across an increasingly fragmented retail and offer landscape. This not only puts pressure on manufacturer budgets, but it makes it more difficult for advertisers to provide a consistent, easy experience for consumers looking for value.

Given the growing demands on their time, consumers are voicing how these complexities

make it a challenge to use coupons how, when and where they want:

As CPG manufacturers and retailers alike adapt to meet consumers’ evolving shopping behaviors, there remains a need to better equip consumers with the savings they desire in ways that are easy for them to find and use.

According to NCH, there were 256.5 billion

CPG coupons distributed (across print and digital

formats) in 2018, resulting in $2.7 billion in coupon

savings redeemed by consumers.6 Both of these

numbers are down vs. the prior year.

58% of consumers feel coupons should be easier to use

49% would use more coupons if it was easier to find

coupons for the items they need

53% prefer to be able to use paperless discounts at any store,

not just the one offering the discount

46% need to search multiple places to find the coupons

for products they want to buy




As their reliance on mobile devices and adoption of the latest tech-driven purchase tools grows, consumers will expect more from marketers.

The modern, empowered shopper wants to be assured that marketers will provide them with the product knowledge and savings they desire whenever and wherever they are looking to find it. Consumers have more control throughout the path to purchase and anticipate customized interactions with brands. As expectations of their purchase experiences evolve, the bar of excellence for marketers — retailers and manufacturers alike — is raised.

Coupons remain a vital factor in the

relationship between brands and consumers.

A driving force in commerce, the popularity of coupons

will likely increase with flexible, intelligent and

real-time delivery.

C O N C L U S I O N

SOURCES 1. Supermarket News, “Many Americans Unconvinced About Buying Groceries Online,” citing research from Morning Consult, May 25, 2018 2. Supermarket News, “Increasingly, Fresh Food Purchases Are Happening Online,” citing research from Retail Feedback Group, Nov. 9, 2018 3. eMarketer “CPG Insights: The Market Drivers You Need to Know for 2019,” citing Nielsen and eMarketer data, U.S. Ecommerce Share of Sales 2018 4. “Digitally Engaged Food Shopper Study,” Food Marketing Institute (FMI) and Nielsen, Jan. 29, 2018 5. Scarborough Multi-Market, 2018 Release 2 (includes coupons for all product categories, not just CPG) 6. NCH Marketing Services, Inc., U.S. CPG Coupon Facts: 2018




A B O U T U SValassis helps thousands of local and national brands tap the potential of industry-leading data through intelligent media delivery — understanding,

engaging and inspiring millions of consumers to action with smarter cross-channel campaigns. We’ve been part of consumers’ lives for decades, introducing new ways to deliver offers and messages that activate them — whether via the mail, digital or the newspaper. NCH Marketing Services,

Inc. and Clipper Magazine are Valassis subsidiaries, and RetailMeNot EverydayTM is its consumer brand. Its signature Have You Seen Me?® program delivers hope to missing children and their families. Valassis and RetailMeNot are wholly owned subsidiaries of Harland Clarke Holdings.

The study was fielded in the third quarter of 2018 in conjunction with a global, third-party market research firm with proficiency in internet surveys. The sample

was derived from an online consumer opinion panel, and all participants were at least 18 years of age and living in the contiguous United States. Consumers were emailed

an invitation to participate in the survey and were given three days to complete it. The survey was closed once 1,000 completed responses had been reached.

The responses were weighted by factors obtained from national census data to provide appropriate representations of demographic groups at summary levels.

A B O U T T H E S T U D Y2 K 1 9 V A L A S S I S C O U P O N I N T E L L I G E N C E R E P O R T

valassis.com


SURVEY RESPONDENT PROFILE

GENERATION BREAKS Millennial (18-35) 31% Generation X (36-52) 29% Baby Boomer (53-71) 33% Senior (72+) 7%

GENDER Female 52% Male 48%

CHILDREN IN HOUSEHOLD No Children 71% Any Children 29%

RACE/ETHNICITY White or Caucasian 65% (not Hispanic or Latino) Hispanic 16% Black or African-American 12% (not Hispanic or Latino) Asian/Pacific Islander 6%

HOUSEHOLD INCOME Under $25K 16% $25K to < $50K 21% $50K to < $75K 19% $75K to < $100K 21% $100K+ 23%


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