Published Tuesday, Feb 13, 2018
Marketers Must Balance Satisfying Consumer Demand for Savings With the Right Media Mix
LIVONIA, Mich., Feb. 13, 2018: NCH Marketing Services, a subsidiary of Valassis, a leader in activating consumers through intelligent media delivery, today reports its Year-End 2017 Coupon Trends Analysis for Consumer Packaged Goods (CPG). Findings reveal that consumers achieved $3.1 billion in savings over the last year, with the average face value of coupons available increasing to $1.95. However, CPG marketers missed an opportunity to capture additional consumer redemption, due to shifts in coupon media allocation.
Catering to consumers’ increasing digital use, CPG marketers drove a 27 percent increase in overall digital distribution. While this contributed to an additional 47 percent in paperless coupon redemption, it was less than 12 share points of total 2017 redemption, and insufficient in scale to replace volume shifted from marketers’ other coupon strategies. As a result, overall CPG coupon redemption declined in 2017.
“The challenge of delivering the right coupon media mix is not new to CPG marketers, but it is now compounded by a changing retailer landscape, shifting consumer product preferences and value-seeking shopping behaviors across the path to purchase,” said Charlie Brown, Vice President of Marketing, NCH. “Marketers are striving to continually optimize and improve results, and when it comes to coupons, that takes a bit of art and data science to build the appropriate coupon strategy. Companies who strike the right balance of print and digital media can expect improved results in a transforming CPG environment.”
Additional key findings from the analysis reveal:
Prior Valassis research based on consumer behavior and preferences indicates that shoppers want to receive savings in both print and digital formats. According to the 2K17 Valassis Coupon Intelligence Report, mail ranks as the most preferred way to obtain coupons, while smartphones/mobile devices recorded the greatest increase.
Acknowledging this trend and market need, the Valassis Consumer Activation Score enables advertisers to precisely target value-oriented audiences and deliver the deals they want to receive. Learn more about the solution here.