Digital Coupon Panel April 16, 2015

Digital Coupons: Revolution or Evolution?

YOUR MODERATOR:

MARK HECKMAN,

PRINCIPAL OF MARK HECKMAN RETAIL CONSULTING

Over 30 years of supermarket retailing experience as VP of Marketing at Marsh, Randalls-Tom Thumb and Food Industry Service Providers such as VRMS, Sorensen Research, and MARC Advertising

Our Panel this Morning

• Franklyn Farace, Vice President of Retail Sales, Coupons.com

• Ajay Amlani, General Manager and Executive Vice President, Founder, YouTechnology

• Dave Helms, President of FamilyTime, LLC

• Frank Careccia, VP of Engineering and CTO, Cellfire-Catalina

• Brian Wiegand, Senior Vice President, Digital, Inmar

Our Panel’s Agenda This Morning

Digital Progress is Everywhere

But So Are Traditional Coupons

Let’s Define Some Terms

• Print at Home Digital FSI, (NET):– Coupons delivered digitally to the consumer on website for

selection, but are printed on home printers to bring to store.

• Load to Card, Save2Card, Load to Account, Direct to Card, eWallet, eCoupon: (EDO)

• Combination of Paper and Digital (DEP)

• Clips: A digital coupon that is either loaded to card or printed at home

• DEP (Dual Electronic and Paper)

• EC (Electronic Checkout)

• EDO (Electronic Discount Opt-In /Load2Card)

• FSI (Free-Standing Insert)

• HO (Handout)

• IR (Instant Redeemable)

• NET (Internet Printable / Print at Home) • SP (Shelf Pad)

Digital Coupons

Landscape today* (updated)–Approximately 37,000 retailer locations are

enabled for EDO (L2C) – EDO: Share of total industry distribution- .3%

• EDO: Growing share of industry redemption – 1.8% – (up from 0.9% in 2013)

– NET: Share of total industry distribution- .3%• NET: Share of industry redemption- 3.5%

– DEP (either NET or L2C): Share of total industry distribution- 1.4%• DEP: Share of industry redemption- 3.5%

– Total Group Distribution: Nearly 2%– Total Group Redemption 8.8% (Both up dramatically YOY)

*Source: 2014 Inmar Coupon Trend Study and Catalina Marketing

Today’s Panel

Franklyn Farace

Vice President of Retail Sales

Ajay Amlani, General Manager and Executive Vice President,

Founder

Today’s Panel

David Helms, President

of FamilyTime, LLC.

Today’s Panel

Frank Careccia, VP of Engineering and CTO

Today’s Panel

Brian Wiegand, Senior Vice President Digital

Today’s Discussion • For the Brands and Retailers the

advantage of Digital Coupons depends heavily upon enabling an accelerated and efficient process of distribution, targeting, clearing, with rapid access to analytics.

• On the consumer side, Digital Coupons offer shoppers a variety of new and easy ways to save without having to clip, store, sort through and handle paper coupons.

• Finally, Digital Coupons must be abundant, represent meaningful value, and relevance for the shopper to engage.

Stakeholder ROI and

Reportage

Abundant and

Relevant Brand

Offers and Content

Consumer-Friendly

Technical Access

Sweet Spot

Honing In on the Digital Coupon Sweet Spot

Topic One

Retail and Brand Stakeholders: The promise of digital couponing for both retailers and brands was the ability to flexibly build digital promotions at much lower costs than traditional paper communicated deals. In addition, access to analytics for both retailer and brand was to enable quick evaluation of results so that promotions could be refined while being executed.

Are we enjoying those promised benefits?.....

If not, what can we do to enhance the retailer and brand proposition?

Topic Two

Consumer Ergonomics :

The use of Digital Coupons is growing, albeit from a very small base. Even with the rapid adaptation of smart phones, shopping apps, and other digital shopping aides, (EDO) coupons remain less than two percent of coupons redeemed.

What can be done to increase consumer adaptation of EDO coupons?

Digital Coupons

Topic ThreeAbundant, Relevant Content:

Consumer behavioral data tells us that despite having access to 50,000-100,000 sku’s in their stores, shoppers tend to focus on several hundred items and mostly those with high house hold category penetration.

What is the long and short term prognosis for offering sufficient high value, targeted offers and content on items shoppers frequently buy?

and …….

How important is the improvement/expansion of content to the growth of digital coupons?

Closing Thoughts

What are top three elements/factors related to Digital Coupons you believe the industry should focus on in 2015?

Questions from the Audience