Coupon Trends and Takeaways for 2013
Devora Rogers
Senior Director, Retail Marketing Insights
Devora Rogers
• Senior Director, Retail
Marketing Insights
• New to Inmar (and North
Carolina)
• Previously with IPG
Media Lab and Shopper
Sciences
• devora.rogers@inmar.com
• 336.770.3495
• Twitter: @devoraerogers
Inmar’s Portfolio of Services
Key Findings
2012 COUPON TRENDS
Distribution & Redemption (in billions)
DOWN 1.2%
2011-2012
DOWN 14.3%
2011-2012
Sources: 2012 Inmar Coupon Trends Report
2012 Distribution
Sources: 2012 Inmar Coupon Trends Report
2012 Redemption
Sources: 2012 Inmar Coupon Trends Report
2.0
BILLION
65.8%
of Total
NONFOOD
FOOD
Redemption Down Across the Board
1.0
BILLION
34.2%
of Total
Sources: 2012 Inmar Coupon Trends Report
So what’s driving the decline?
Declining paid
Sunday newspaper
subscriptions
Low consumer
confidence
Rising prices
Sources: 2012 Inmar Coupon Trends Report
Tactics having limited impact on
redemption
Average
Average Purchase
Face Value
Requirement
Distributed
Distributed
Average
Redemption
Period
Distributed
Distributed:
Distributed:
Distributed:
$1.57 /coupon
1.49
2.4 months
(-1.3%)
units/coupon
(-4.0%)
Redeemed:
Redeemed:
Redeemed:
$1.14 /coupon
1.61 units
5.4 months
(+1.8%)
(-7.0%)
Sources: 2012 Inmar Coupon Trends Report
Tactics having limited impact on
redemption
34.36% 37.64%
“I usually won’t
use a coupon if I
have to purchase
multiple items”
“There are too
many
rules/exclusions
for using
coupons”
Sources: 2012 Inmar Coupon Trends Report
New Product Trial Dampening
Redemption
190 727
93
Manufacturers
Promoting New
Products via
FSI in 2012
New Product
Event Dates in
2012
Categories
Featuring New
Product Events
in 2012
+9.9%
+23.2%
+13.4%
over 2011
over 2011
over 2011
52.83%
“I can’t find coupons for the
products I want to buy”
Sources:, Marx and 2012 Inmar Shopper Survey
Redemption Period by Method Type
My coupons
often expire before I have
the chance to use them.
Sources: 2012 Inmar Coupon Trends Report
SHOPPER BEHAVIOR
“New Couponer”
The
ENTITLED
ENABLED
ENGAGED
15
Changing Shopper Sentiment
From
“If I put in the
effort, I can
get deals on
the brands I
buy.”
effort to entitlement
“If I shop a store a lot,
I shouldn’t have to
work for deals
I deserve.”
Are shoppers still using coupons?
Compared to 2011, shoppers reported
coupon usage in 2012:
In their
own words:
YES
Sources: 2012 Inmar Coupon Trends Report
Shopper Attitudes to Coupons
80%
Using coupons
makes me feel
smarter.
65%
Don’t think they
should have to
work for deals.
66%
36%
37%
I would use
coupons more if
they were more
available online.
I am not sure where
to get coupons for
the products that I
want to buy.
I wish all coupons
were digital.
Sources: 2012 Inmar Coupon Trends Report
Hispanic Shopper Attitudes
44%
Hispanic
35%
NonHispanic
“I wish all coupons were digital”
19
The “New Couponer” is Tech Savvy
By 2015
of U.S. cell
users will have
smartphones
Coupon methods used
(on average)
Smartphone User = 7.12
Non-smartphone User = 5.19
Goldman Sachs, 2011
Sources: 2013 Inmar Shopper Behavior Survey
Rise of the Mansumer
Participation in holiday meal
planning
40%
44%
86%
Sources: 2012 Inmar Holiday Study, KSDK, Men’s Health, Spike Network’s ‘State of Men’ study
Average Number of Coupon Methods Used
7.49
Kids
7.32
Hispanic
6.76
6.12
NonHispanic
5.47
6.43
7.11
35+
Female
Overall
5.68
6.00
Under 35
Male
No kids
22
THE DISH ON DIGITAL
How Digitally Discovered Coupons
are Redeemed
Redeemed like paper
Paperlessly redeemed
Retailer Loyalty Program (i.e.
eWallet/ Direct-to-Card / Save-toCard)
Text
Email
Website
Unique Identifier (10-digit mobile)
Loyalty Aggregator (AOL
shortcuts, SavingStar, etc.)
Social
QR (et
al)
Apps
Manifests as a paper coupon
Redeems as a paper coupon
Settles as a paper coupon
“Closed” Retailer Program (Target,
Walgreens, Starbucks, etc.)
Never manifests as paper
Redemption recorded separately
Digital Stats for 2012
27.5M
REDEEMED
250M
CLIPPED
$0.91
AVERAGE
FACE VALUE
11%
AVERAGE
REDEMPTION
RATE
In 2013, the number of retailer storefronts
which accept paperless coupons is
expected to grow 50% or more depending
on channel.
Sources: 2012 Inmar Coupon Trends Report
2013: So far, so good?
Q1 2013 (vs. Q1 2012)
Distribution a little better than flat (up 2%)
Redemption continues to slide… (down 6.6%)
…as marketers continue to pull back (face values down,
redemption period shortened)
2013: So far, so good?
Just the (Q1) facts:
Distribution 90.6 billion (up 2.0%)
Redemption 717.4 million (down 6.6%)
Avg. Face Value (dist) $1.48 (down 9.8%)
Avg. Face Value (red) $1.31 (down 2.2%)
Avg. Redemption Period (dist) 2.2 months (down 4.3%)
Avg. Redemption Period (red) 4.9 months (down 2.0%)
Avg. Purchase Requirement (dist) 1.55 (down 0.6%)
Avg. Purchase Requirement (red) 1.61 (up 1.9%)
Plus ca change…
Q1 2013 (vs. Q1 2012)
Distribution a little better than flat (up 2%)
Redemption continues to slide… (down 6.6%)
…as marketers continue to pull back (face values down,
redemption period shortened)
…plus c’est la meme chose
Q1 2013 (vs. Q1 2012)
FSI remains dominant for distribution (91.2%)
“Big 3” redemption methods (FSI, Instant Redeemable,
Electronic Checkout) account for 75% of all coupons
redeemed
Print at Home / Internet Printable next with 5.8% share
Thank you.
QUESTIONS?