November 01, 2018

Are coupon redeemers only chasing after this week’s bargains – or do they represent a longer-term opportunity for brands?

A new analysis from 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 a remarkable 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. (See Table 1.) 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.

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,” said 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.”


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