Tracking the
Progress of Digital Coupons
YOUR MODERATOR:
MARK HECKMAN,
PRINCIPAL OF MHC….
Over 30 years of supermarket retailing experience as VP of
Marketing at Marsh, Randalls-Tom Thumb and Food Industry
Service Providers such as VRMS, Sorensen Research, and
MARC Advertising
Our Discussion Last Year….
Are We Truly Entering the Age of
Dominant Digital Content?
What Remain the Biggest Inhibitors to
Digital Couponing Growth?
Going Forward, How Do Our Panelist See
the Future of the Coexistence of Paper and
Digital?
As Coupon Professionals, How Will
our Skill Sets and Professional
Activities Change with the Emergence
of Digital?
Our Conclusions from 2013
•
Digital Coupon volume and quality will grow at a steady pace as
more retailer engage….but not likely a “hockey stick” shaped
inflection point.
•
The volume of Digital Coupon offers and content, while improving,
yet still is not sufficient to attract a critical mass audience.
•
Paper coupons, while diminishing in its dominance, is not going
away…at least anytime soon. There are viable roles, uses, and
audiences for both.
•
Digital Coupon accelerates the process of distribution, clearing and
accounting. Industry pros will need to adapt to the speed and the
inherent need from brands and retailers to understand impact in
near real time.
The Digital Lexicon
•
•
•
Print at Home (PAH), Digital FSI, NET:
– Coupons delivered digitally to the
consumer on website for selection, but are
printed on home printers to bring to store.
Load to Card, Save2Card, Load to Account,
Direct to Card, eWallet, eCoupon:
– Coupons that are delivered digitally to the
consumer on website or mobile device that
are either selected or directly placed in the
shopper’s account. These digital coupons
are activated when shopper purchases the
associated item and identifies themselves
as the account holder at the point of sale.
Clips: A digital coupon that is either loaded
to card or printed at home
Much Attention, Financial and
Otherwise…Being Given to Digital
But the Paper Mills are Still
Humming
Coupons Offered
FSI
All Other
12.7%
Source: Inmar Coupon Trends
Study, 2013-2014
87.3%
FSI 87.3% of Coupons Offered
Digital Remains Small But Growing
% of Coupons
Redeemed
All Other
28%
Checkout
8%
Digital
2% PAH
5%
Source: Inmar Coupon Trends Study, 2013-2014
2013 66 Million Digital
Coupons Redeemed
…2.3% of Total
FSI
41%
Instant
Redeem
16%
Tracking the Digital Numbers
2012
2013
L2C
L2C
• Coupons Issued
– 250 Million Digital Clips
• Coupons Redeemed
– 27 Million --- RR 11.20%
• Face Value --- $1.23
• 15,000 Retail Roof Tops
Offering Open Network L2C
Coupons
• Coupons Issued
– 1.1 Billion Digital Clips 
• Coupons Redeemed
– 66 Million  --- RR 6.23%
• Face Value --- $1.40 
• 17,000 Retail Roof Tops Offering
Open Network L2C Coupons
Source: Inmar Coupon Trends Study, 2013-2014
Tracking the Numbers
2012
2013
PAH
PAH
• 1.35 Billion Coupons Issued
• 137 Million Coupons
Redeemed
• RR --- 17.7%,.
• Face Value --- $1.74
• Approximately 1.27 Billion
Issued 
• 145 Million Coupons
Redeemed 
• RR --- 17%
• Face Value --- $1.86. 
Source: Inmar Coupon Trends Study, 2013-2014
Today’s Panel
Henri Lellouche:
GM Smartsource
iGroup
Today’s Panel
Travis Lewis,
President,
Promotion Network
Patrick Moorhead
Today’s Panel
Franklyn Farace
Today’s Panel
Cheryl Black,
President, CEO
YOU Technology
Today’s Panel
Brian Brinkley,
CTO
Barriers to Digital Couponing
• Lack of Technology Integration (In-store)
– POS integration and L2C or L2A Capabilities
• Competing Value Propositions
– Brands and Retailer still Vested in Paper Coupons
and Traditional Promotions
• Dearth of Digital Content
– Too few Digital Offers
– Low Household Penetration Categories
• Restrictive Purchase Requirements
• For L2C, Still Too Few Retailers Offering the
Service
Discussion Topics this Year
• Overall, given the trends in Digital Coupons over
the last two years, how would you characterize the
results…. Surprisingly Strong, As Expected, or
Disappointing?
• Off the barriers to growth we have cited, which are
the most formidable and how can we as agents of
the industry, help mitigate those barriers?
• As consumer adaptation of smart phone
technology and other shopper aides, increase, is
there a case to be made, especially to food
retailers, that digital couponing can be leveraged
as a competitive advantage?
Discussion Topics this Year
• Unlike FSI, L2C coupons require retailer
engagement and support. How would you
characterize this support currently and what could
or must retailers do to help L2C/L2A coupon
programs become more effective and
mainstream?
• Finally, crystal ball time. Given the trends and
numbers we are experiencing in L2C/L2A and PAH,
how will we be characterizing digital coupon
growth next year at the ACP?
– Steady, more of the same steady growth
– A big year, some real breakthroughs occurred
– We’ve hit a saturation point, growth is slowing