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Deals, Coupons and Offers – Oh My!

                 Presented by:
         Steve Schaffer, Founder & CEO
                  Offers.com

                 January 13, 2013
Steve Schaffer – Founder & CEO of Vertive, LLC
• Founded Vertive in July 2003
• Moved to Austin in January of 2004 (after 17 years in Silicon
  Valley)
• 20+ years of Internet and marketing experience
• Initial president of the PMA




      © 2003, 2012 Vertive, LLC Proprietary and Confidential   Slide 2   January 13, 2013
© 2003, 2012 Vertive, LLC Proprietary and Confidential   Slide 3   January 13, 2013
Outline
• Types
• Facts
• Tips




   © 2003, 2012 Vertive, LLC Proprietary and Confidential   Slide 4   January 13, 2013
Deals, Coupons & Special Offers




© 2003, 2012 Vertive, LLC Proprietary and Confidential   Slide 5   January 13, 2013
Coupons & Deals are in the News Headlines




 © 2003, 2012 Vertive, LLC Proprietary and Confidential   Slide 6   January 13, 2013
Coupons & Deals are COOL!
                            People LIKE them




© 2003, 2012 Vertive, LLC Proprietary and Confidential   Slide 7   January 13, 2013
What are the types of
discounts and how are they
        different?


 © 2003, 2012 Vertive, LLC Proprietary and Confidential   Slide 8   January 13, 2013
In Store and Local



© 2003, 2012 Vertive, LLC Proprietary and Confidential   Slide 9   January 13, 2013
CPG (Consumer Packaged Goods)
                                  Grocery Coupons




© 2003, 2012 Vertive, LLC Proprietary and Confidential   Slide 10   January 13, 2013
Printable Coupons
Consumers can browse, print, and use the
         coupons in the store




 © 2003, 2012 Vertive, LLC Proprietary and Confidential   Slide 11   January 13, 2013
Local Vouchers




© 2003, 2012 Vertive, LLC Proprietary and Confidential   Slide 12   January 13, 2013
Online



© 2003, 2012 Vertive, LLC Proprietary and Confidential   Slide 13   January 13, 2013
Online Coupons
        Discounts just for online purchases




© 2003, 2012 Vertive, LLC Proprietary and Confidential   Slide 14   January 13, 2013
Coupon Codes and Promo Codes
A code that must be manually entered at checkout




    © 2003, 2012 Vertive, LLC Proprietary and Confidential   Slide 15   January 13, 2013
Free Shipping
    Free shipping coupons and coupon codes




© 2003, 2012 Vertive, LLC Proprietary and Confidential   Slide 16   January 13, 2013
Deals
Usually a specific product deal, but can also be a
                brand or category




  © 2003, 2012 Vertive, LLC Proprietary and Confidential   Slide 17   January 13, 2013
Card-Linked Offers
A shopping deal linked to the credit and debit cards
              shoppers regularly use




    © 2003, 2012 Vertive, LLC Proprietary and Confidential   Slide 18   January 13, 2013
© 2003, 2012 Vertive, LLC Proprietary and Confidential   Slide 19   January 13, 2013
Coupons Make Consumers Happy & More Relaxed


                                                     “Oxytocin, a hormone that
                                                     is directly related to love
                                                     and happiness, spikes when
                                                     people receive a coupon.
                                                     And, in fact, increases more
                                                     than when people receive a
                                                     gift. The data shows that
                                                     coupons make consumers
                                                     happier and more relaxed.”

                                                           Source: Coupons.com 2012 study performed by Dr. Paul J. Zak


  © 2003, 2012 Vertive, LLC Proprietary and Confidential                                          Slide 20   January 13, 2013
63% surge in coupon
        redemption in 2011

                                                Source: Coupons.org “The Coupon’s Comeback” Feb. 2012



© 2003, 2012 Vertive, LLC Proprietary and Confidential                              Slide 21   January 13, 2013
$470 billion of coupon value
   was offered by consumer
packaged goods (CPG) to U.S.
 consumers in 2011- of which
  $4.6 billion coupons were
          redeemed
 Source: NCH Marketing Services, Inc. “NCH Annual Topline U.S. CPG Coupon Facts Report For
                                                                  Year-End 2011” Jan. 2012


      © 2003, 2012 Vertive, LLC Proprietary and Confidential             Slide 22   January 13, 2013
The Top 5 Retailers in Total U.S. CPG
Coupon Redemption Volume in 2011:


 1.         Walmart
 2.         Kroger
 3.         Walgreens
 4.         Target
 5.         Publix

Source: NCH Marketing Services, Inc. “NCH Annual Topline U.S. CPG Coupon Facts Report For Year-End
                                                                                  2011” Jan. 2012



  © 2003, 2012 Vertive, LLC Proprietary and Confidential                       Slide23   January 13, 2013
About 75 million people, or 1/3
     of the total Internet
 population, buy goods online
 and have them shipped each
           quarter
                       Source: comScore “Online Shopping Customer Experience Study” May 2012



  © 2003, 2012 Vertive, LLC Proprietary and Confidential                   Slide 24   January 13, 2013
66% of consumers will use online
coupons for at least 25% of their
      purchases in the next year


 Source: Forrester Research “The Impact of Online Coupons and Promotion Codes” Sept. 2011


   © 2003, 2012 Vertive, LLC Proprietary and Confidential               Slide 25   January 13, 2013
57% of consumers who used a
 coupon code during their last
online purchase said that if they
      had not received the
discount, they would not have
       bought the item(s)
 Source: Forrester Research “The Impact of Online Coupons and Promotion Codes” Sept. 2011


   © 2003, 2012 Vertive, LLC Proprietary and Confidential               Slide 26   January 13, 2013
52% of online consumers are
likely to reconsider a brand they
   haven’t used in a while after
 receiving a promotion offer for
            that brand
            Source: Forrester Research “Affiliate Marketing – The Direct and Indirect Value That
                                                    Affiliates Deliver to Advertisers” June 2012


   © 2003, 2012 Vertive, LLC Proprietary and Confidential                     Slide 27   January 13, 2013
32% of online buyers typically
  begin the online shopping
   process on affiliate sites

           Source: Forrester Research “Affiliate Marketing – The Direct and Indirect Value That
                                                   Affiliates Deliver to Advertisers” June 2012


  © 2003, 2012 Vertive, LLC Proprietary and Confidential                     Slide 28   January 13, 2013
Parents report 43% growth in
plans to use online coupons for
  50% or more of purchases

 Source: Forrester Research “The Impact of Online Coupons and Promotion Codes” Sept. 2011


   © 2003, 2012 Vertive, LLC Proprietary and Confidential               Slide 29   January 13, 2013
Using Coupons, Deals & Offers




© 2003, 2012 Vertive, LLC Proprietary and Confidential   Slide 30   January 13, 2013
What is your goal?

• New customer acquisition
• Increase average order sizes
• Decrease user abandonment



    © 2003, 2012 Vertive, LLC Proprietary and Confidential   Slide 31   January 13, 2013
Run the numbers

• Can you afford it
• Does it drive desired action




    © 2003, 2012 Vertive, LLC Proprietary and Confidential   Slide 32   January 13, 2013
Tracking & Attribution


• Would you have converted the sale
            “Data from comScore shows that 80% of
            online shoppers have placed items in the
            shopping cart and left the site without
            making a purchase”
                        Source: comScore “Online Shopping Customer Experience Study” May 2012



   © 2003, 2012 Vertive, LLC Proprietary and Confidential                   Slide 33   January 13, 2013
Expiration Dates


• Safety
• Drives urgency




    © 2003, 2012 Vertive, LLC Proprietary and Confidential   Slide 34   January 13, 2013
© 2003, 2012 Vertive, LLC Proprietary and Confidential   Slide 35   January 13, 2013
Steve.Schaffer@Vertive.com




© 2003, 2012 Vertive, LLC Proprietary and Confidential   Slide 36   January 13, 2013

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Coupons, Deals, and Sales – Oh My!

  • 1. Deals, Coupons and Offers – Oh My! Presented by: Steve Schaffer, Founder & CEO Offers.com January 13, 2013
  • 2. Steve Schaffer – Founder & CEO of Vertive, LLC • Founded Vertive in July 2003 • Moved to Austin in January of 2004 (after 17 years in Silicon Valley) • 20+ years of Internet and marketing experience • Initial president of the PMA © 2003, 2012 Vertive, LLC Proprietary and Confidential Slide 2 January 13, 2013
  • 3. © 2003, 2012 Vertive, LLC Proprietary and Confidential Slide 3 January 13, 2013
  • 4. Outline • Types • Facts • Tips © 2003, 2012 Vertive, LLC Proprietary and Confidential Slide 4 January 13, 2013
  • 5. Deals, Coupons & Special Offers © 2003, 2012 Vertive, LLC Proprietary and Confidential Slide 5 January 13, 2013
  • 6. Coupons & Deals are in the News Headlines © 2003, 2012 Vertive, LLC Proprietary and Confidential Slide 6 January 13, 2013
  • 7. Coupons & Deals are COOL! People LIKE them © 2003, 2012 Vertive, LLC Proprietary and Confidential Slide 7 January 13, 2013
  • 8. What are the types of discounts and how are they different? © 2003, 2012 Vertive, LLC Proprietary and Confidential Slide 8 January 13, 2013
  • 9. In Store and Local © 2003, 2012 Vertive, LLC Proprietary and Confidential Slide 9 January 13, 2013
  • 10. CPG (Consumer Packaged Goods) Grocery Coupons © 2003, 2012 Vertive, LLC Proprietary and Confidential Slide 10 January 13, 2013
  • 11. Printable Coupons Consumers can browse, print, and use the coupons in the store © 2003, 2012 Vertive, LLC Proprietary and Confidential Slide 11 January 13, 2013
  • 12. Local Vouchers © 2003, 2012 Vertive, LLC Proprietary and Confidential Slide 12 January 13, 2013
  • 13. Online © 2003, 2012 Vertive, LLC Proprietary and Confidential Slide 13 January 13, 2013
  • 14. Online Coupons Discounts just for online purchases © 2003, 2012 Vertive, LLC Proprietary and Confidential Slide 14 January 13, 2013
  • 15. Coupon Codes and Promo Codes A code that must be manually entered at checkout © 2003, 2012 Vertive, LLC Proprietary and Confidential Slide 15 January 13, 2013
  • 16. Free Shipping Free shipping coupons and coupon codes © 2003, 2012 Vertive, LLC Proprietary and Confidential Slide 16 January 13, 2013
  • 17. Deals Usually a specific product deal, but can also be a brand or category © 2003, 2012 Vertive, LLC Proprietary and Confidential Slide 17 January 13, 2013
  • 18. Card-Linked Offers A shopping deal linked to the credit and debit cards shoppers regularly use © 2003, 2012 Vertive, LLC Proprietary and Confidential Slide 18 January 13, 2013
  • 19. © 2003, 2012 Vertive, LLC Proprietary and Confidential Slide 19 January 13, 2013
  • 20. Coupons Make Consumers Happy & More Relaxed “Oxytocin, a hormone that is directly related to love and happiness, spikes when people receive a coupon. And, in fact, increases more than when people receive a gift. The data shows that coupons make consumers happier and more relaxed.” Source: Coupons.com 2012 study performed by Dr. Paul J. Zak © 2003, 2012 Vertive, LLC Proprietary and Confidential Slide 20 January 13, 2013
  • 21. 63% surge in coupon redemption in 2011 Source: Coupons.org “The Coupon’s Comeback” Feb. 2012 © 2003, 2012 Vertive, LLC Proprietary and Confidential Slide 21 January 13, 2013
  • 22. $470 billion of coupon value was offered by consumer packaged goods (CPG) to U.S. consumers in 2011- of which $4.6 billion coupons were redeemed Source: NCH Marketing Services, Inc. “NCH Annual Topline U.S. CPG Coupon Facts Report For Year-End 2011” Jan. 2012 © 2003, 2012 Vertive, LLC Proprietary and Confidential Slide 22 January 13, 2013
  • 23. The Top 5 Retailers in Total U.S. CPG Coupon Redemption Volume in 2011: 1. Walmart 2. Kroger 3. Walgreens 4. Target 5. Publix Source: NCH Marketing Services, Inc. “NCH Annual Topline U.S. CPG Coupon Facts Report For Year-End 2011” Jan. 2012 © 2003, 2012 Vertive, LLC Proprietary and Confidential Slide23 January 13, 2013
  • 24. About 75 million people, or 1/3 of the total Internet population, buy goods online and have them shipped each quarter Source: comScore “Online Shopping Customer Experience Study” May 2012 © 2003, 2012 Vertive, LLC Proprietary and Confidential Slide 24 January 13, 2013
  • 25. 66% of consumers will use online coupons for at least 25% of their purchases in the next year Source: Forrester Research “The Impact of Online Coupons and Promotion Codes” Sept. 2011 © 2003, 2012 Vertive, LLC Proprietary and Confidential Slide 25 January 13, 2013
  • 26. 57% of consumers who used a coupon code during their last online purchase said that if they had not received the discount, they would not have bought the item(s) Source: Forrester Research “The Impact of Online Coupons and Promotion Codes” Sept. 2011 © 2003, 2012 Vertive, LLC Proprietary and Confidential Slide 26 January 13, 2013
  • 27. 52% of online consumers are likely to reconsider a brand they haven’t used in a while after receiving a promotion offer for that brand Source: Forrester Research “Affiliate Marketing – The Direct and Indirect Value That Affiliates Deliver to Advertisers” June 2012 © 2003, 2012 Vertive, LLC Proprietary and Confidential Slide 27 January 13, 2013
  • 28. 32% of online buyers typically begin the online shopping process on affiliate sites Source: Forrester Research “Affiliate Marketing – The Direct and Indirect Value That Affiliates Deliver to Advertisers” June 2012 © 2003, 2012 Vertive, LLC Proprietary and Confidential Slide 28 January 13, 2013
  • 29. Parents report 43% growth in plans to use online coupons for 50% or more of purchases Source: Forrester Research “The Impact of Online Coupons and Promotion Codes” Sept. 2011 © 2003, 2012 Vertive, LLC Proprietary and Confidential Slide 29 January 13, 2013
  • 30. Using Coupons, Deals & Offers © 2003, 2012 Vertive, LLC Proprietary and Confidential Slide 30 January 13, 2013
  • 31. What is your goal? • New customer acquisition • Increase average order sizes • Decrease user abandonment © 2003, 2012 Vertive, LLC Proprietary and Confidential Slide 31 January 13, 2013
  • 32. Run the numbers • Can you afford it • Does it drive desired action © 2003, 2012 Vertive, LLC Proprietary and Confidential Slide 32 January 13, 2013
  • 33. Tracking & Attribution • Would you have converted the sale “Data from comScore shows that 80% of online shoppers have placed items in the shopping cart and left the site without making a purchase” Source: comScore “Online Shopping Customer Experience Study” May 2012 © 2003, 2012 Vertive, LLC Proprietary and Confidential Slide 33 January 13, 2013
  • 34. Expiration Dates • Safety • Drives urgency © 2003, 2012 Vertive, LLC Proprietary and Confidential Slide 34 January 13, 2013
  • 35. © 2003, 2012 Vertive, LLC Proprietary and Confidential Slide 35 January 13, 2013
  • 36. Steve.Schaffer@Vertive.com © 2003, 2012 Vertive, LLC Proprietary and Confidential Slide 36 January 13, 2013

Editor's Notes

  1. Any Questions?