Are coupon redeemers only chasing after this week’s bargains—or do they represent a longer-term opportunity for brands?
A new analysis from research and analytics firm GfK’s National Shopper Lab (NSL) database shows that an average of four in ten (41%) FSI (free-standing insert) coupon redeemers will return to buy the same product again. But “repeat” rates vary broadly by campaign, ranging from 3% to 84%.
GfK also found that 32% of redeemers who are already loyal to a competitive product will still “repeat” with the new brand—as well as 66% of those who were already loyal to the couponed product. In addition, the NSL data shows that 50% of coupon redeemers are current buyers of the couponed brand, while the other half are new or lapsed.
Coupon redemption patterns, 2013-17
Current buyers of couponed brand
New/lapsed buyers of couponed brand
Loyal to competitive brand
Loyal to couponed brand
New category buyers
One-time category buyers
GfK’s National Shopper Lab has access to shopping data from over 86 million loyalty card users nationwide, covering 96% of the US population and 45 out of 50 states. GfK tracks the buying habits of consumers over the course of years and can trace how specific promotions may affect short- and long-term brand loyalty. The new findings span from 2013 to 2017, representing print coupon campaigns in 45 CPG categories.
“Really understanding the value of any promotion requires more than a one-time snapshot of behavior,” says Neal Heffernan, EVP of Sales Effectiveness at GfK. “By following specific shoppers—new or lapsed buyers of specific brands, or competitive brand loyals—we learn a lot about effective couponing and the value of different executions. This information is essential for setting the right coupon strategy to reach a brand’s key customers and potential buyers.”