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Transcript of Voucher Codes
- 1. 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 Dixon: Global Managing Director: Research
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 Groups research consultancy division, iCD Research. Paul now oversees both expanding divisions.
Gavin Male: Group Sales & Marketing Director
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.
3. A history...
1887 - The first coupon appears....
The coupon culture explodes
Investment from business
Change to consumers mindset
4. The UK market for coupons
29% increase growth in coupon distribution
20% growth in total value redeemed from 400 m to 497m
Direct maildominating distribution with 47.1% of market share
54%of coupons delivered carry unique tracking codes
Multibrand promotional offersamount for 20% of distribution
Not a TRADITIONAL coupon culture..
5. Brands using voucher codes... Dell, M7S, currys, Argos... There are 1000s of brands... The only one weve seen backlash is John Lewis... Who ironically grew through voucher codes
650% growth over the past 12 months (ISP)
Sainsburys invest multimillions in a coupon loyalty scheme
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.
6. A common held theory...
Consumers follow a very long purchase process in order to get to their final purchase...
Content and review sites...
...to cost comparison sites...
...to voucher code sites...
...to cashback sites...
...to the store and purchase...
Cookies dropping here, there and everywhere.
7. We know the affiliate view...
But whats the consumer perspective...
8. The Consumer View
9. For the first time in over 18 months, consumer confidence is up
Consumer Confidence Index
10. And theres never been a better time to purchase major goods
Major Goods Index
11. Or household goods
Household Goods Index
12. Unrivalled Understanding of the UK Consumer
13. Consumer confidence is UP
Its perceived to be a GOOD time to purchase
How does the UK consumer purchase products?
14. FACT 1
The consumer decision making process hasnt changed over time
15. The customer journey
16. 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
17. We spoke to the population to see what had changed in the last 18 months
The public said...
18 months ago, coupons were something you would associate with American grocery shopping now I find myself activelysearching for codes for most of my purchases
If I was 50% online shopping before the credit crunch, Im now 90% - at least
You have to be more savvy now and explore all your options
I find it difficult to trust what is genuine and what is basic SPAM.
This is the power of the Internet isnt it there is always a better deal out there
I always shopped online for convenience, now I do it for the price benefit
Theres always some reward to purchasing particular products you just need to work out which is best for you
18. FACT 3
The opportunities to engage before the journey are endless
20. Need Recognition >>> Information Search
Time Spent During Stage
Where Started Process
Less than 1 week
21. What people do when searching the for information about the product
22. Increased opportunities to engage - Information Search --- before start of Purchase Decision
23. FACT 4
The opportunities to engage within
the purchase process still exist
24. During the purchase process
25. Why do people engage with multiple channels throughout the purchase decision?
It asked me if I had a voucher, which I didnt, but I went to find one result!
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
A final check on the prices
Im 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
Quick scan on ebay to see whether I was making the right decision
26. FACT 5
Voucher codes are increasing in usage
with a varied but attractive user profile
27. Profile of Voucher Code Users
Earn over 50,000
Social Grade A
22% of UK recent shoppers interacted with a voucher code site
at some stage of their consumer decision making process.
28. Profile of Cashback Users
Earn over 50,000
Social Grade A
25% of UK recent shoppers interacted with cashback sites at
some stage of their consumer decision making process
29. Similar Profiles Different Consumers
Have used Voucher Codes or Cashback Sites during the entire purchasing process
Have used both Voucher Codes and Cashback Sites during the actual purchasing process
30. 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.
Try and get the best price
Because it brought the price down further
I looked for discounts to see if I could save any money on the flights
31. 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)
Just searched for it google and I found it pretty quickly
Came in the email
Looked for holidays with voucher discounts online, catalogue and at travel agents.
32. What makes a good voucher code site
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
You have to judge whether you trust the site and you have those first couple of minutes to make the judgement call.
Something that does what it says it is going to
A well designed site that is simple to use
33. What makes a bad voucher code site
There is amazing amount of absolute crap out there one site had more pop ups than codes and when I made a simple search, itdelivered nothing of use cant even remember the name of it but dont ever go there
Clutter just make it simple and Ill go there but some of them look like grads have put the site together as part of a project
When it doesnt deliver.If youre 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
34. FACT 6
Voucher codes are best suited
towards specific vertical sectors
35. Vertical Sectors Have Searched For Voucher Codes
36. FACT 7
Voucher codes drive satisfaction; loyalty and advocacy
37. How Satisfied Were You With The Process You Went Through
38. How likely would you be to recommend the same process
39. FACT 8
The promoter MUST do it right, otherwise you run this risk
40. You mentioned you used a voucher code site, but were dissatisfied with your experience.In your own words, can you explain why?
Have you seen the voucher code sites out there have a look and then ask me the same question
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
Online vouchers should be as simple as cutting a voucher from a catalogue.Its not.Scissors for me these days
Consumers arent stupid
Leave aloophole and it will be exploite