Shifts in Consumer Coupon Redemption Signal for Reevaluation of Promotion Strategies
Winston-Salem, NC, September 12, 2018
Today, Inmar announced findings from Inmar Analytics’ 2018 Mid-Year Promotion Industry Analysis that offer food marketers opportunities to evaluate current promotion strategies and make updates based on consumers’ coupon redemption in the first half of 2018.
Overall coupon redemption for food items declined in the first half of 2018, but that’s not to say shoppers do not want or are not interested in coupons. According to the analysis, consumers are having difficulty finding the right food offers that align with their needs, but coupons are still powerful when it comes to influencing purchases. In fact, the recent Inmar Insights Report found that 78 percent of food shoppers who used a coupon on their most recent shopping trip said it influenced their purchase in some form, such as buying a new product, buying a larger quantity of a product, buying a product sooner than planned, etc.
Among food shoppers who did not use a coupon on their most recent shopping trip, 50 percent said it was because they could not find coupons for the products they wanted to buy, according to Inmar Analytics’ most recent Shopper Insights Report. However, marketers can remedy this through accurately targeting consumers with more relevant coupons, which can be accomplished through increasing Load-to-Card options.
It is possible that food manufacturers and marketers may have previously invested in coupon methods that are not appealing to shoppers, such as Print-at-Home coupons, which saw redemption rates decrease in 2018 vs. 2017. Shoppers are now choosing alternative methods for food savings, like Load-to-Card coupons, which saw a 31 percent increase in redemption during the first half of 2018.
“Print-at-Home coupons have historically been a popular method of coupon distribution, but lacked sufficient targeting,” said David Mounts, Chairman and CEO of Inmar. “Savvy, forward-thinking marketers are transitioning their budgets to Load-to-Card distribution tactics, which play a key role in the ability to target consumers with relevant offers, which drives redemption and conversions.”
The general availability of food coupons and distribution type are not the only factors that food manufacturers should consider when evaluating promotion strategies. During the first half of 2018, compared to that of 2017, the face value distributed of food coupons increased to $1.21 (6.5 percent) and the average redemption period of distributed food coupons declined 2.1 percent to 2.2 months.
Food manufacturers are facing increasing competition from emerging and private label brands. According to the 2018 Mid-Year Promotion Industry Analysis, non-food marketers are seeing a positive impact on overall redemption by creating a larger incentive and a sense of urgency to redeem by increasing the face values and shortening the redemption periods of offers. Food marketers may want to consider a similar promotion strategy around offers that could yield greater activation to increase engagement, which drives trial, purchases, and lays the groundwork for loyalty.
More information about the Inmar Analytics’ 2018 Mid-Year Promotion Industry Analysis, can be found here.
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Anyone who has redeemed a coupon, filled a prescription or returned a product, has touched Inmar. We apply technology and data science to improve outcomes for consumers and those who serve them. As a trusted intermediary for over 35 years, we have unmatched access to billions of consumer and business transactions in real time. Our analytics, platforms and services enable engagement with shoppers and patients, and optimize results.