Post on 18-Jan-2015
description
Voucher Codes – An Added Cost That Is Open To Abuse Or A Valuable Customer Acquisition
And Retention Tool?
A research led presentation that explores the UK consumers approach to online shopping in a variety of vertical sectors. With the ever increasing volume of online voucher codes and money saving initiatives available to the consumer, has buying behaviour changed? This presentation will use
real consumer information gathered by iCD Research to demonstrate how the customer journey and decision making process had changed
during the credit crunch and how it has impacted the retailer.
Paul has a long and established background in market research, working in Australasia, the Americas, EMEA and the UK with clients that included Microsoft, the International Herald Tribune, O2, Tourism Australia and Virgin Money, to name a few. In 2005, he was appointed research and insight director of The iD Factor and 18 months later was responsible for the creation of the Group’s research consultancy division, iCD Research. Paul now oversees both expanding divisions.
Paul Dixon: Global Managing Director: Research
Gavin is responsible for multi-divisional sales within TMN Group as well as supervising the marketing of the group and its divisions. Gavin has worked for the Group since April 2002 and during his career he has worked his way from a sales account manager, to Sales Director and then Managing Director of tmnmedia. Gavin has worked extensively in a number of online methodologies - Affiliate Marketing, Email and Lead Generation.
Gavin Male: Group Sales & Marketing Director
Presenters
A history...
The coupon culture explodes
1887 - The first coupon appears....
Investment from business
Change to consumers mindset
The UK market for coupons
20% growth in total value redeemed from £400 m to £497m
29% increase growth in coupon distribution
Direct mail dominating distribution with 47.1% of market share
54% of coupons delivered carry unique tracking codes
Multi brand promotional offers amount for 20% of distribution
Not a TRADITIONAL coupon culture..
Present Day...
• Brands using voucher codes... Dell, M7S, currys, Argos... There are 1000’s of brands... The only one we’ve seen ‘backlash’ is John Lewis... Who ironically grew through voucher codes
Sainsburys invest multimillions in a coupon loyalty scheme
650% growth over the past 12 months (ISP)
10,800,000 results for ‘voucher codes’ in Google
Over 50 websites paying for PPC clicks on Google.
IAB regulates voucher codes best practise as of beginning of 2009
Majority of brands open to using online voucher codes.
A common held theory...
...to cost comparison sites...
Content and review sites...
...to voucher code sites...
...to cashback sites...
...to the store and purchase...
Cookies dropping here, there and everywhere.
Consumers follow a very long purchase process in order to get to their final purchase...
We know the affiliate view...
But what’s the consumer perspective...
The Consumer View
For the first time in over 18 months, consumer confidence is up
Consumer Confidence Index
And there’s never been a better time to purchase major goods
Major Goods Index
Or household goods
Household Goods Index
Unrivalled Understanding of the UK Consumer
Consumer confidence is UPIt’s perceived to be a GOOD time to
purchase
How does the UK consumer purchase products?
FACT 1
The consumer decision making process hasn’t changed over time
The customer journey
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Purchase evaluation
FACT 2
Within the purchase process, consumers are taking different routes, variations and seeking numerous possibilities – all of which, are linked
to the value proposition
We spoke to the population to see what had changed in the last 18 months
18 months ago, ‘coupons’ were something you would
associate with American grocery shopping – now I
find myself actively searching for codes for most of my purchases
I always shopped online for
convenience, now I do it for the price
benefit
You have to be more savvy now and explore all your options
This is the power of the Internet
isn’t it – there is always a better deal out there
I find it difficult to trust what is
genuine and what is basic SPAM.
There’s always some reward to purchasing particular
products – you just need to work out which is best for you
If I was 50% online
shopping before the
credit crunch, I’m now 90% -
at least
The public said...
FACT 3
The opportunities to engage before the journey are endless
Television
Travel
DVD
Need Recognition >>> Information Search
OnlineOffline
OnlineOffline
OnlineOffline
Where Started Process
Time Spent During Stage
2-4 weeks
Less than 1 week
1-2 weeks
What people do when searching the for information about the product
Spoke to expert in the fieldSpoke to colleagues
Read newspaper/magazine articles or reviewsLooked in catalogues
Visited online auction sitesVisited forums
Searched for recommendations onlineSearched for voucher code discounts
Searched for cashback optionsVisited potential providers/brands stores to evaluate
Visited an online shopping portalSpoke to friendsSpoke to family
Visited a price comparison websiteUsed a search engine
Went to potential providers/brands websites that could offer this product/service
Increased opportunities to engage - Information Search --- before start of
Purchase Decision
Spoke to expert in the field
Read newspaper/magazine articles or reviews
Visited online auction sites
Searched for recommendations online
Searched for cashback options
Visited an online shopping portal
Spoke to family
Used a search engine
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0%
FACT 4
The opportunities to engage within the purchase process still exist
During the purchase process
Spoke to expert in the field
Read newspaper/magazine articles or reviews
Searched for recommendations online
Visited forums
Spoke to friends
Searched for cashback options
Spoke to family
Used a search engine
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0%
Why do people engage with multiple channels throughout the purchase
decision?I had made the decision and
found the flight but at this stage I still thought there might be a
better deal out there – no harm in one final search
It asked me if I had a voucher, which I
didn’t, but I went to find one – result!
I’m a member of various shopping sites so I just
wanted to see what they would offer as I get cashback with them
Spoke to my friend who bought the
exact same model to see what website she
went through
A final check on the prices
Quick scan on ebay to see whether I was making the right
decision
FACT 5
Voucher codes are increasing in usage with a varied but attractive user profile
Profile of Voucher Code Users
22% of UK recent shoppers interacted with a voucher code site at some stage of their consumer decision making process.
54% Male
48% Aged 18-34
47% Professional
17% Earn over £50,000
13% Social Grade A
Profile of Cashback Users
25% of UK recent shoppers interacted with cashback sites atsome stage of their consumer decision making process
55% Male
57% Aged 18-34
52% Professional
18% Earn over £50,000
14% Social Grade A
Similar Profiles – Different Consumers
45% Have used Voucher Codes or Cashback Sites during the entire purchasing process
22%Have used both Voucher Codes and Cashback
Sites during the actual purchasing process
Why did you use a voucher code website
Voucher codes are useful, sometimes, they give a good discount on the purchase I
make.
I tried to use some, but was unable to find any relevant
ones- I wanted to save some money if possible.
I looked for discounts to see if I could save any money on
the flights
Try and get the best price
Because it brought the price down
further
Where did you go?
I originally searched and found a couple of good sites which are bookmarked now
and I use when I need to
There are a few good sites I tend to use to browse for discount codes, as larger,
popular retailers sometimes have a discount (and I try to find the best deals and get
the best price I can)
Looked for holidays with voucher discounts online,
catalogue and at travel agents.
Just searched for it – google and I found it pretty quickly
Came in the email
What makes a good voucher code site
You have to judge whether you trust the site and you have those first couple of
minutes to make the judgement call.
Just make it simple to understand. So many of
them requires you to jump through hoops to find the
one code you need – I want something simple and fast
A well designed site that is simple to use
Something that does what it
says it is going to
What makes a bad voucher code site
Clutter – just make it simple and I’ll go there but some of them
look like grads have put the site together as part of a project
There is amazing amount of absolute crap out there – one site
had more pop ups than codes and when I made a simple search,
it delivered nothing of use – can’t even remember the name
of it but don’t ever go there
When it doesn’t deliver. If you’re a voucher code – I suggest you
actually offer codes rather than trying to sign me up for other
things
Complicated site – it needs to be quick
FACT 6
Voucher codes are best suited towards specific vertical sectors
Vertical Sectors Have Searched For Voucher Codes
Antiques & Art
Sports & Outdoors
Toys, Kids & Baby
Health & Beauty
Home & Garden
Small Appliances
Groceries
Entertainment (Movies, Music, Games, Books)
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0%
FACT 7
Voucher codes drive satisfaction; loyalty and advocacy
How Satisfied Were You With The Process You Went Through
Average
Used Cashback Site
Used Voucher Codes
0%10%
20%30%
40%50%
60%70%
80%90%
100%
Rated 1-4Rated 5-7Rated 8-9
How likely would you be to recommend the same process
Average
Used Cashback Site
Used Voucher Codes
Rated 1-4Rated 5-7Rated 8-9
FACT 8
The promoter MUST do it right, otherwise you run this risk…
You mentioned you used a voucher code site, but were dissatisfied with your experience. In your own words,
can you explain why?
Why would I bother again. Yes, I could have saved £25 but for the
25 minutes it took me to navigate through the site, trying to find what I thought would be just a simple code – I was more
frustrated than that I would have been if someone had
ripped up £25 from my wallet in front of me
Have you seen the voucher code sites out there – have a look and then ask me the same question
Online vouchers should be as simple as cutting a voucher from
a catalogue. It’s not. Scissors for me these days
Leave a loophole and it will be exploited...
Consumers aren’t stupid
Managed correctly, coupons can be highly effective
Must have customer engagement
Target audience with relevant offers, and brands
BUT...
A Valuable Customer Acquisition and Retention Tool
CONCLUSION
Many thanks
gavin.male@tmngroup.com – TMN Group – All Servicespaul.dixon@theidfactor.com – TMN Group – Research
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