Consumer Insights: News America Reports 75% of Sales Using Coupons Are Incremental

Consumer Insights: News America Reports 75% of Sales Using Coupons Are Incremental

On average, seventy-five percent of consumer packaged goods coupon redemptions, across all types, result in incremental sales according to a study that was presented at the Association of Coupon Professionals’ 11th annual Industry Coupon Conference on Wednesday, April 20 in Charlotte, NC by GfK and News America Marketing.  This is a 9% increase since 2010 when the number was a still-impressive 69%. Industry experts at GfK theorize that the increase in incremental sales may be an indication that the purchase decisions of American shoppers are more easily swayed by coupons today than ever before.

The study returned additional findings that may be surprising to the marketers who have begun turning away from the Free Standing Insert (FSI) in favor of other coupon alternatives.

“The FSI continues to be the coupon vehicle with the highest return on investment, as measured by incremental sales,” said Neal Heffernan, SVP, Shopper & Retail Strategy, GfK. “Even with the emergence and proliferation of other coupon program options, the FSI’s rich and varied content offering and unmatched scale keep this product incredibly relevant.”

In addition to showing how coupons, and the FSI in particular, can help Consumer Packaged Goods (CPG) brands generally, the new study reveals deeper insights into how coupons can be implemented to meet specific CPG marketer goals.  For example, for programs designed to maximize return on investment, it was found that coupons that require multiple purchases and can be used on large, well-established businesses will be more likely to achieve a higher ROI. For programs designed to drive trial, a high-value offer combined with low purchase requirements have the best chance of achieving their goal.

“The data we collected delivers some exciting new insights into coupon best practices,” said Mark Peiser, VP, Consumer & Market Insights, News America Marketing. “We’re looking forward to sharing these specifics with marketers at the ACP conference on April 20th so that they can use this information to more successfully guide their coupon executions in the future.”

The study leverages loyalty card data from tens of millions of shoppers who are included in GfK’s National Shopper Lab.  The findings were based on thousands of coupon evaluations conducted by GfK on CPG brands and an analysis conducted in conjunction with several large CPG marketers on FSI coupons where program objectives and coupon execution were profiled.

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SOURCE News America Marketing

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