,®,0,VALASSIS,CO U P REPORT,Table of contents,ON,®INTELLIGENCE,Valassis generation age segmentation » Millennial: Born 1982-1998,|,Generation X: Born 1965-1981,|,Baby Boomer: Born 1946-1964,Executive summaryKey trends in coupon useOverall useFrequency of useUse by media typeMaking purchase decisions,.3.4-7.8-9,At home: .10-14Coupons and discounts influence product, brand and store selectionShopping list vs actual purchasesWhat to buyWhere to shopAt the store: .15-17In-store influence motivates consumers to deviate from their listIn-store discounts and circularsMobile notificationsEverywhere in-between: .18-20The expanded influence of coupons and discountsUse of mobile savings appsImpact of coupons from places close to workInfluence of coupons on the way to the store,After the purchase,.21-22,Post-purchase rewardsSatisfied customers influence additional purchases,The 2K17 Valassis,®,Coupon Intelligence Report“Influencing ConsumersAlong the Path to Purchase”provides detailed insight intohow print, mobile and digitalcoupons and discountsimpact the consumershopping journeybefore,during, and afterthe purchase.,Executive summaryConsumers are becoming increasingly adept at integrating both print and digital coupons as they,plan their purchases. Overall, coupon use is holding steady with 90% of consumers using them from,a variety of online and offline sources. This finding is relatively consistent across generations andother consumer audience segments, such as parents and multicultural consumers.The undeniable conclusion: coupons are influential, impacting shopper decisions at variousstages throughout the path to purchase, beginning with list-making. A majority of consumers preparea list when shopping, factoring coupons into the process. Since the items on the list are typically theones bought, the role of coupons on purchase decisions is an important one. Parents prepare listsprior to shopping even more than other consumers and are more heavily influenced by couponsand discounts.The influence of coupons on the final product selection is clearmore than two-thirds of shopperswill only buy a product if there is a coupon for it. Moreover, 86% of consumers make a purchasebased on a discount at the store, including those presented via in-store circulars or mobilenotifications.For shoppers, the buying process does not simply end with a purchase, as many consumers sharereviews and opinions on purchases with friends and family, thereby influencing the buying decisionsof others. Additionally, consumers scan receipts with their smartphone after the transaction to receiveadditional rewards and savings, such as cash back, points, or more coupons. Marketers can harnessthese behaviors and cultivate brand loyalty by continuing to find ways to delight and reward theircustomers.The report focuses on consumer behavior related to shopping for traditional consumer packagedgoods (CPG) categories, including food, over-the-counter medications, household items, and healthand beauty products.,3,Influencing consumers along the path to purchase,K Y TRENDS IN,COUPON USE,K Y TRENDS IN COUPON USE,Always,Very oftenSometimesRarely,201715%,28%36%12%,201610%,28%37%15%,Couponfrequency,Overall use. Coupon use remains high overall, with 90% of consumers reporting they use them.There are no significant differences in coupon use among millennials, generation X, or boomers(though, perhaps surprisingly, 94% of millennials say they use couponsthe only audiencesegment showing growth year over year).,Frequency of use. There has been a significantincrease in consumers who say they always usecoupons when making purchases. Conversely,fewer shoppers are saying that they rarely or,never use coupons.Use by media type. Overall, consumers are usingthe same or more coupons compared to last year.,They continue to rely on print coupons received from,traditional sources, such as the mail and newspaper.Approximately 30% of consumers report an increase intheir use of paper coupons versus the prior year. In addition,more than a third of shoppers note that their use of paperless(digital) discounts has also increased.,<<,|,return to table of contents,|,>>,All Consumers90% | 90%2016 2017,Millennials88%2016,94%2017,Generation X92% | 90%2016 2017,My coupon usage,My use of paper coupons I get in the mailMy use of paper coupons I get from a newspaper coupon bookMy use of paperless discounts*,Used the same ormore vs last year,2017,Couponuse,87%,89%85%91%,*Discounts I receive on my smartphone/mobile device and/or download onto my store ID/loyalty card,Never 10% 7%Base: all respondents*Figures do not sum to 100 due torounding and respondents whoindicated they were unsure.,Baby Boomers90% | 89%2016 2017Base: all respondents,Base: coupon users,5,41%,29%31%36%,Increasedvs last year,46%,60%54%55%,Did not changevs last year,88%86%85%82%,91%89%89%86%,87%85%87%81%,87%85%82%79%,78%66%,79%71%,78%81%,84%89%,81%74%,80%79%,74%50%,76%54%,K Y TRENDS IN COUPON USE,<<,|,return to table of contents,|,>>,I use paper coupons such as thoseI get from the newspaper coupon book,in the mail, in the store, or printed frommy computerI use paper coupons I get in the mailI use paper coupons I get in a storeI use paper coupons I get from thenewspaper coupon book,I use paper coupons I print from mycomputerI use paperless discounts: discountsI receive on my smartphone/mobile device,download onto my store ID/loyalty card,PaperCoupons& PaperlessDiscounts,Keytrends,notasked87%87%82%,notasked85%85%82%,notasked90%90%83%,notasked86%86%79%,All Consumers,Millennials,Generation X,Baby Boomers,2016,2017,2016,2017,2016,2017,2016,2017,Base: all respondents,2017,44%37%37%35%32%,2016,40%38%31%30%24%,I prefer to get coupons in the mailI prefer to get coupons from a coupon book found in the newspaperI prefer discounts from the internet that I can download onto my store loyalty cardI prefer to print coupons from the internetI prefer discounts on my smartphone/mobile device,Base: all respondents,Preferredsources ofcoupons &discounts,6,Mail most preferred; digital preferenceshowing greatest growthInterestingly, the above usage trendsare reflected when looking at consumerpreference for receiving coupons anddiscounts »,The percentage of consumersusing discounts from paperlesssources has increased. Yetcoupons from printedsources still account for themajority share of use. Thisdemonstrates that shoppersvalue savings whether viaprinted or digital formats.,Thirty-five percent of shoppers haveincreased their use of the internet to find,<<,|,return to table of contents,|,>>,K Y TRENDS IN COUPON USE,Print: mail, magazines, Sunday & weekday newspaper | Digital media: email, text, QR code, internet sites/apps | Loyalty cards: preferred customer card,7,Retailer websites57% | 70%Manufacturer/brand websites53% | 70%Coupon websites53% | 68%Search engines49% | 65%Links from savings sites/blogs44% | 62%Social networking websites37% | 50%,Websites used to search for coupons2016 2017 % Point Increase,+13+17+15+16+18+13,Scarborough datacorroborates an integratedapproach to maximizeconsumer reach. 1,57%Print,37%Digitalmedia,28%Loyaltycards,70%of consumerssave moneywith print, digitalmedia and/orloyalty cards »,coupons. More shoppers are searching avariety of websites for savings, includingretailer, coupon, manufacturer andsavings sites, in addition to searchengines and social media.PRINT + DIGITAL + MOBILEThese trends in print, digital and mobile coupons and discounts,emphasize that it remains important for marketers to take an integratedapproach to their coupon strategies. A unified plan is key to maximizing,consumer reach and engagement.Base: all respondents,Overallcouponusage,Influencing consumers along the path to purchase,MAKINGPURCH SEDECISIONS,AT HOME | AT THE STORE | EVERYWHERE IN-BETWEEN,At home before my shopping trip at a storeDuring my shopping trip at a storeOn my way to the storeI prefer to shop on the internet,53%27%9%3%,45%29%8%8%,48%29%8%6%,FoodProducts,HHGoods,Personal Care& Hygiene,Purchasedecisions*,<<,|,return to table of contents,|,>>,MAKING PURCH SE DECISIONSConsumers begin their purchase process with research, primarily doneat home, and tend to make decisions on most items before they head tothe store. Within the food products, household goods and personal carecategories, over 45% of shoppers make their decisions at home, whilemore than 25% make their purchase decisions in the store.,Base: all respondentsThis is supported by IRI research, which found that 57% of consumers will make theirpurchase decisions before they enter the retail store.2 In addition, according to a 2016xAd and Millward Brown study, retail shoppers in the U.S. are more than twice as likelyto use their smartphones at home (54%) vs. at the store (24%) for retail information, withnearly 40% of those “at home consumers” using their phones to research a product.3Although the bulk of influence still happens in the home, there are strong opportunitiesto capture the attention of shoppers at the point of purchase and while they areout and about, as highlighted later in this report.,*Figures do not sum to 100 due to respondents who indicated they do not shop or were unsureThe key to influencingpurchases is to reachand engage consumersvia various touchpointsin advance of theirshopping trip.,9,AT H ME,Influencing consumers along the path to purchase,at the beginning of their shopping journey.Coupons and deals impact new product trial. According to 86% of consumers,coupons have influenced them to try a new product. In fact, approximately 20%of shoppers said that paper coupons received at home were the primary influencethat encouraged them to purchase a food or household goods brand or productwithin the past year that they would not normally buy. This was the top choice,even when considering other influencers such as in-store sales and promotions.Further evidence of coupons at home as drivers of product trial redemption data,Typically, compared toyour shopping list, howsimilar is the list to whatyou actually buy?,Exactly the sameSomewhat similarAbout half-and-halfSomewhat differentVery differentNot sure,17%59%17%4%1%3%,Coupons and discountsinfluence product, brandand store selectionOver 90% of shoppers create a list prior to shopping and 84% use coupons duringthis process. Recent Kantar Retail survey data indicates similar behavior, with 86%of consumers saying they make a handwritten list before their store trip.4 Shoppersdo not stray too far from their listsmost report that their purchases are at leastsimilar to their shopping list.This demonstrates that if brands want to be part of the consumers initialconsideration set, it is important to get in front of shoppers at home duringlist creation and preliminary decision-making. For example, more than 70% ofconsumers report buying an item only if they have a coupon for it. Since couponsimpact the list itself, one can see the connection to being in front of the consumer,<<,|,return to table of contents,|,>>,AT H,ME,from coupon books delivered via the Free-standing Insert (FSI) shows that 53%of all FSI redemptions were from new/lapsed brand users.5Base: prepares a shopping list before going to the store*Figures do not sum to 100 due to rounding.,11,82%of consumers switchstores to take advantageof weekly specials,When it comes to searching for coupons, dealsand special offers, consumers look to a variety ofsources, beginning with coupons mailed to the homeand store circulars. Before going to the store »,83%of shoppers findcoupons in print sourcessuch as newspapers,coupon books, or in,84%of shoppers searchfor deals in storecirculars,75%of shoppers printcoupons from theinternet,Coupons and deals impact store selection.Eighty-four percent of shopperssay their store choice is influencedby coupons. In addition »,<<,|,return to table of contents,|,>>,AT H,ME,the mailBase: all respondents,12,77%decide which storeto shop based on wherethey can use papercoupons67%decide which store toshop based on wherethey can use paperlessdiscounts received ona smartphone or mobiledevice and/or downloadedonto store ID/loyalty cardBase: all respondents, 87% of parents decide where to shop based on wherethey can use paperless discounts received on their,smartphone/mobile device or downloaded to theirloyalty cards.,All Consumers,Prepare a shopping list before going to the storeUse coupons when planning their shopping listSearch for deals in store circulars before going to the storeBuy a product only if there is a coupon for it,Planningwhat to buy,Athome,91%84%84%71%,97%94%94%81%,All Consumers,Switch stores to take advantage of weekly specialsIncreased: My shopping at stores other thanmy main store of choice because other storesare advertising better dealsCoupons influence which store to shop,Storeselection,Athome,Parents,82%33%84%,92%47%93%,<<,|,return to table of contents,