How vouchers and discounts are changing consumer behaviour
Contacts:
Louise VacherConsulting Director, Consumer divisionT: +44 (0) 207 012 6156E: [email protected]
Research conducted among 2,000 GB adultsJune 2013
Understanding the economic context
Average disposable income has declined
from £6,500 p.a. in
mid-2010 to £5,500 in early 2102
Only households earning
more than £100,000 p.a. expect their financial situation to improve in the next 12 months
However…
there has been a small but steady increase in average disposable
income 2013 to
£5,750
The number of people saying they will spend
more on buying clothes, eating out and going out is increasing
Source: YouGov HEAT study, July 2013
Mobile app
Daily deal sites eg. Wowcher, Groupon
Voucher code website
Printed voucher from a store/ newspaper/ direct mail
Discounting is an established facet of consumer behaviour
82% of GB adults have used some form of discount or voucher
24%
41%
38%
71%
Base: all GB adults
Who uses voucher code websites?
…and femaleUsers are slightly more likely to be 25-44…
Spread across Britain: no geographic hotspots
65% have a Smartphone
33% have a tablet
18-24
25-34
35-44
45-54
55+
12%
22%
22%
19%
25%
41%
59%
Base: users of vouchercode websites
Gender App users Printed voucher users
Male 52% 42%
Female 48% 58%
Not surprisingly, app users are more likely to be younger ABC1s while older females are more likely to use more traditional methods
Base: all users of mobile apps/printed vouchers
Social Grade App users Printed voucher users
ABC1 55% 57%
C2DE 45% 43%
Age App users Printed voucher users
18-24 19% 10%
25-34 26% 15%
35-44 23% 19%
45-54 18% 21%
55+ 14% 35%
Smartphone operating system
w1 w2 w3 w4 W5 W6 w7 w8 w9 w10 w11 w12 w13 w14
0%
10%
20%
30%
40%
50%
3%
5%
3% 3%2% 2%
1%2% 2%
3%
1%2%
1% 1%
17%
10%9%
7%6% 6%
5%
3%
5%
3%2% 2% 2%
1%
19%
10%9%
10%
3%2% 2%
1% 1% 1%0% 0% 0%
1%2%
1%2% 2% 2% 2%
3% 3% 3%
0%1% 1%
11%12% 12%
13%12%
9%
12%
9%
12%
9%
11%
7%8% 8%
6%
8%9%
10%
20%
25%
29%30%
35%
41% 41%40% 40%
41%
20%
25%
27% 27%
29%
25%26%
33%
24%
26%
24%25%
28%
26%
Source: YouGov Smartphone Tracker Base: Nat Rep respondents who own a smartphone (2965)
P19Q1 – What operating system does your [CURRENT HANDSET] use?
Windows Mobile 6.5
Windows 8
Symbian
BlackBerryiOSAndroid
Other
Windows 7
Android has taken over from iOS as the most used operating system, but Apple users download more apps
Average number of apps
downloaded
(By marketplace)
28
18
8
11
Groupon
Moneysupermarket.com
Wowcher
Orange/EE Wednesdays
O2 Priority Moments
Myvouchercodes.co.uk
Vouchercodes.co.uk
Travelzoo
Taste Card
KGB
Livingsocial
secretsales.com
Vouchercloud
Barclays Bespoke offers
Gourmet Society
Coupons.com
Netvouchercodes
Voucherseeker
79%
76%
67%
58%
43%
42%
41%
26%
25%
21%
21%
19%
18%
17%
15%
15%
15%
10%
8
Sites/companies aware of
Groupon
Moneysupermarket.com
Wowcher
Orange/EE Wednesdays
O2 Priority Moments
Myvouchercodes.co.uk
Vouchercodes.co.uk
Travelzoo
Taste Card
KGB
Livingsocial
secretsales.com
Vouchercloud
Barclays Bespoke offers
Gourmet Society
Coupons.com
Netvouchercodes
Voucherseeker
27%
22%
8%
21%
8%
13%
15%
7%
9%
6%
7%
3%
5%
3%
4%
4%
2%
2%
Wowcher has the lowest usage : awareness ratio
Orange/EE, Vouchercodes and Taste Card have the
highest usage : awareness ratio
Sites/companies used
Which sites are consumers using?
Base: all GB adults
Voucher usage extends across a wide range of sectors
Shopping55%
Dining 39%
Entertainment
26%Travel19%
Beauty19%
Base: all GB adults
For some, the likelihood of paying full price is now minimal
Base: those who use vouchers/discounts in each category
Hotels
Cinema
Travel
Mailorder fashion
High street dining
Grocery stores
High street fashion
16%
18%
11%
7%
13%
3%
2%
57%
40%
42%
40%
31%
13%
14%
22%
33%
34%
42%
47%
68%
45%
5%
9%
13%
11%
9%
16%
39%
73%
58%
53%
47%
44%
16%
16%
Often pay full price - sometimes use voucher/discount code Almost always pay full price - rarely use voucher/discount codeColumn2 Column22
% rarely/never pay full price
“I now expect to get some form of deal or discount…”
Base : those who use vouchers/discounts in each category : strongly agree or somewhat agree
Travel
42% Agree
Shopping
23% Agree
Beauty
38% Agree
27% Agree
Dining
34% Agree
Entertainment
Savvy shoppers are adapting their behaviour
Base: all those who use vouchers/discounts codes for retail/dining
Have you changed your choice of retail outlet at the last minute as a result of a
voucher offer?
No, I stick with the outlets I
know best
40%
40%
No 66%
Don’t know
8% 26%D
on’t know 7%
No 63%
30%
Have you changed your choice of dining venue at the last minute as a result of a
voucher offer?
Vouchers/discounts encourage trial….
Travel
Beauty
Dining
Retail
Entertainment
51%
42%
38%
38%
37%
% of voucher/discount users who have used brand they wouldn’t otherwise have done
Base: those who use vouchers/discounts in each category
…and repeat business
% of voucher/discount users who have continued to use the outlet since
Base: those who use vouchers/discounts in each category
81% have visited/used again
71% have visited/used again
83% have visited/used again
80% have visited/used again
78% have visited/used again
TR
AV
EL
BE
AU
TY
DIN
ING
RE
TAIL
EN
T’T
Unaware
Too much hassle
Not available for what they want
Encourage to spend money
By the time you've gone through the t&c's of a voucher to see if you are eligible you'd have been better off paying the extra 30p
for that coffee.
Never seen the point and don't
trust them.
They're very specific and time limited. I would rather not trawl through their
websites to find a voucher applicable to me.
Because they encourage you to spend money when you really can't afford to.
I don't buy much because I don't need much and vouchers just encourage people to by a load of toot
that they don't need or really want. can't be bothered; good enough bargains to be had on ebay - all in the same
place.
I find that once you have printed them off or try to use them there are a hundred and one different terms and conditions that
make it too onerous to actually use them
Don’t trust them
I don't think I trust them. I don't like giving out my information too much and getting
lots of spam back.there is always a catch and it seems to be
more expensive than normal price you would spend for a certain item.
What are the barriers to using vouchers/discount codes?
I assume that they'll be vouchers on things I don't buy
Open question: Why have you never used vouchers or discount codes?
Is there a potential negative impact?
36% get a buzz from using discounts/vouchers
33% feel special when they receive exclusive offers from companies they are a
customer of
Only 18% feel cheated if they receive an offer via e-mail/text/direct mail, to find the promotion is open to all
Only 19% question a brand’s quality when they offer multiple offers
Base: those who use vouchers/discounts
However 1 in 4 users say they get frustrated being bombarded with offers: a potential watch-out for the future?