This week Valassis released the results of its Sixth Annual RedPlum® Purse String Survey, to gain insight from today’s shoppers and learn more about their shopping behaviors – especially where and how they look for deals. The study, based on insights from more than 5,100 respondents, found something surprising about Millenials in particular: although they are more ardent digital devotees (no surprise there), they prefer good old paper coupons.
“The RedPlum Purse String Survey results are somewhat counter intuitive from what you might expect based on what we know about Millennials,” said Lisa Reynolds, Valassis Vice President of Consumer Engagement. “While they are heavy digital users, this group also embraces tried and true methods for savings, as much as any other age group … they area a true testament to the use of savings from both print and digital sources.”
Perhaps most surprisingly, 51 percent of Millenials indicated that print is their first choice for savings. Unlike other groups, they rely slightly more on in-store coupons and deals than retail circulars; but like other groups, their top four sources are newspaper, emails/coupon alerts, Internet searches and their mailbox.
We wanted to learn more, so we were fortunate enough to get some Q&A time with Lisa Reynolds. Here’s what she had to say.
BTN: Millennials are seen as being less brand loyal than other demographics. What strategies do your most recent findings suggest for Retailers and CPGs to at least hold ‘share of wallet’ with this segment?
LR: When asked to self-identify as promotion sensitive, price conscious, brand loyal or time crunched, Millennials like all other respondents indicated they were promotion sensitive (69 percent versus all respondents 75 percent). Given their desire to seek out savings from a variety of sources and the multitude of influencers along the path to purchase, retailers and CPGs must utilize an omni-channel approach, using not only digital but also print and in-store initiatives to reach this consumer.
BTN: You mention various vehicles for conveying offers – have you observed any correlation between offers types and conveyances? i.e., what types of offers work best as retail circular deals versus mobile coupons?
LR: While we didn’t specifically ask a question correlating offer type, what we do know is that Millennials use their smartphones to a higher degree for savings and in a variety of ways. For example, 45 percent (compared to 24 percent all respondents) of Millennials accessed a coupon in an email on their smartphone; 38 percent downloaded a savings app (versus 21 percent of all respondents); and 36 percent compared deals on their phone (versus 20 percent overall). The RedPlum Purse String Survey also found that these promotion-sensitive Millennials are getting their savings the same way as all other consumers across age groups and income levels with 51 percent indicating newspaper is their first choice for savings.
BTN: You note several differences between Millennials and all age groups. What trends are you observing in these gaps – are Millenials pulling away from the herd and becoming more distinctive in their behaviors over time, or are any other age groups (if so, which) becoming more like Millenials, closing those gaps?
LR: The RedPlum Purse String Survey confirmed Millennials’ penchant for all things digital. They are leading the way using more mobile coupons and using their smart phones to access a coupon in an email, a coupon code, compare deals and download a coupon to a loyalty card. These trends will continue. We also found some distinctions between the Haves (those with an income over $60,000) versus the Have-Nots (those with an income under $60,000). Haves spend about 10 percent less time looking for deals to achieve the same savings. Both use their savings for basic necessities; the Have-Nots to a higher degree (65 percent versus 52 percent for Haves). Next, the Haves use their savings on dining out while the Have-Nots put it toward paying down debt. As a result, besides groceries, the Haves are more interested in coupons and deals on dining out and entertainment.
BrandTech News View: Regardless of demographic, consumers embracing digital coupons still rely heavily on paper coupons. Wise retailers and brand marketers need to tightly integrate their omni-channel offers and messages to make sure they engage all consumers at the Zero Moment of Truth.
- Computer Savvy Millennials Still Turn to the Newspaper for Their Coupons (marketingpilgrim.com)
- Valassis Announces Third Quarter 2013 Cash Dividend (prnewswire.com)
- Precision Marketing: What Do Millennials Really Want? (blogs.sap.com)