Trends – Key Insights, Millenials, Coupon ROI, and Mobile
Insights #1 – Millennials and CPG Coupons – they seek coupons from many sources to save money
63% of Millennial CPG coupons report using more coupons than the year before.
Millennials seek CPG coupon savings from a variety of platforms – 66% use some form of digital coupon (internet print at home, direct to card and/or mobile) and 63% still use traditional FSI coupons. Marketers need several platforms to reach these key consumers. By using both digital and FSI coupons, marketers can reach 88% of Millennial coupon users:
Source: News America Marketing Coupon Attitude and Usage Study, 2014, conducted nationally by ECI; Millennial sample size = 182
Insight #2 – FSI Coupon ROI
- FSIs can deliver both short and long term ROI. On average, FSIs delivered $1.02 ROI in the short term (defined as during the coupon expiration period) and $1.10 in the long term (expiration period plus the first repeat purchase among new brand triers). Marketers should measure both the short and long term effects of their FSI to get a complete view of FSI ROI.
- FSIs on established brands generally have higher ROI than new brands ($1.16 vs. $0.74). The higher established brand ROI may be due to higher base volume and fewer trial oriented offers.
- FSIs that require multiple product purchases tend to have higher ROI than single purchase requirement offers ($1.15 vs. $0.82)
- FSIs that allow the coupon to be redeemed against any item in the line have higher ROI than FSIs with coupons good on only a part of the line or on a new item within the line
Source: News America Marketing FSI Meta Analysis, based on 28 coupon evaluations from multiple CPGs by 84.51, 2015
Insight # 3 – Mobile CPG coupons can extend the reach of traditional coupon methods
6% of CPG coupon users report using a mobile coupon but not the FSI
Source: News America Marketing Coupon Attitude and Usage Study, 2014, conducted nationally by ECI; total sample size = 859