Today’s headlines continue to examine and comment on inflation (rising or falling). However, no matter what they’re being told, American consumers don’t seem wholly convinced when they see that prices are still high on almost everything. This collective sentiment has changed how shoppers from high-earning to lower-income are approaching retail purchasing. Moreover, things have flipped, and the American consumer could now be described as a plane in a holding pattern, waiting for the right moment to stop circling and land a purchase at a company. A great barometer, 31% of respondents, when asked which jewelry retailer they want to receive a coupon from, answered Tiffany & Co. Can you imagine? There was a time when it would be unheard of to see a customer of this extremely high-end store walk in holding a coupon. However, gloves are off nowadays; the frugal shoppers are no longer hiding; they are in plain sight and want authentic deals to motivate them to shop.
Recently, Valpak and market research firm PureSpectrum partnered up to gather data from over 500 consumers to better understand what is driving their decisions regarding retail buying. And from big box to mom-and-pop, one thing is sure: they want clear-messaged deals and discounts before they dig into their pockets and hand over that hard-earned moolah.
Key findings:
- 65% of consumers shop locally to support the community
- Almost half of respondents would switch retailers for a coupon or offer
- 59% prefer email, while 49% prefer direct mail to receive coupons or offers
- Birthday, loyalty, seasonal and holiday are the most wanted personalized offers
- 72% look for BOGO when they shop, and 65% want marked-down merch
Timing is everything
Despite stubborn prices and concerns of being ripped off, consumers, of course, still must shop. We asked respondents how often they shop for everything from health & beauty to toys & games to booze and more. The results are interesting, to say the least, somewhat exciting, and support the importance of why you should always be advertising. Because, in today’s noisy advertising world, you never know what kiosk, geo-fenced area, or mailbox they’re at when they have a want or a need. One well-known adage perfectly sums it up, “Better safe than sorry.”
Purchase behaviors, from when something is needed to weekly and monthly rituals, run across the board, meaning those eyes are like a freeway of potential customers highly likely to come across your ad if properly targeted. 23% of respondents purchase alcohol weekly, and 46% buy health & beauty supplies monthly, whereas 49% go out and get electronics pretty much whenever they need it.
Local love
Local businesses are the heart of any American community, and the citizens understand and celebrate this by shopping where they know and trust—at neighborhood stores. It is easy to tell a thriving community from a struggling one simply by making a trip to the local strip malls and/or areas of commerce. Is it hustling and bustling with parked cars, kids on scooters, and parents managing responsibilities while pushing carts and holding shopping bags, or is it emaciated with rent signs and dilapidated, unkept structures abound? As many as 65% of respondents said they shop locally because it supports the community they and their families are a part of, while 59% do it because it’s close by. This fact screams the obvious: advertising is crucial to success—from trusted proprietors to signs in the window to coupons in the mailboxes that line the well-manicured residential streets. Local businesses maintain a loyal relationship with their customers by aligning values and continuing to message out that they have what you need when you need it, sprinkling on a bit of sugar with a deal.
“Coupons and sales are a big motivator for me for in-store and online shopping.”
The amount spent on online shopping in the U.S. is forecasted to increase between now and 2029 by $657 billion! Yeah, it beats traffic, long lines, rude people, and other reasons; some days, we feel like staying home is better. But what gets the shoppers to convert on devices (ecommerce) vs. in-store? 71% of the consumers we asked said they shop online because they can do it from the comfort of their home, while 67% do it for that now almost ubiquitous reason—free delivery!
It’s no surprise that some consumers, when not feeling like braving the world that day, may be due to a bad experience: poor customer service, crime concerns, empty shelves, etc. However, many folks still enjoy heading to a local mom-and-pop or national chain to browse and discover all sorts of things they like, from pop-up sales to spotting a new product they just can’t pass up. And when they do, the sky’s the limit for businesses that consistently advertise. 65% of our respondents say they shop in-store because they like experiencing products in person. In contrast, another of the most significant challenges since the beginning of online shopping is that 60% want to try on items in the store—that tactile sense and absolute certainty of you and not an avatar to gauge whether or not a product fits or looks right.
Scratching the switch itch
The brand war will never end—and that’s a fantastic truth for consumers because competition yields discounts. And while not surprisingly low cost (65%) took the lion’s share of what would motivate someone to try or switch retail brands, in a healthy second place was a coupon/offer (46%).
They did it your way
59% of respondents chose their inbox as the top way they would like to receive coupons. This concept makes sense, as the mailbox came in second with 49%, for two reasons: 1) email coupons arrive as an image that can be printed or opened on your phone right there in the store. And 2) USPS Informed Delivery emails alert the resident that there is a coupon in the mailbox waiting for them, and here is what it looks like—blam, 2 matching, one tactile, one soon-to-be printed, coupons for the price (free) of one!
You say it’s your birthday!
When asked, the vast majority of consumers said they prefer personalized offers. Recognition of loyalty goes a long way with existing and potential customers, as 61% said they look forward to receiving offers for their loyalty to a company. And, whether we admit it or not, it feels great when someone remembers to wish you a happy birthday (59%) or even merely to congratulate you on an important anniversary.
Motivated shopping
Some top offers consumers look for when they shop are buy one, get one free (72%), or marked-down items (65%). However, one offer gaining momentum is the purchased deals where, for instance, you pay $10 for $20 worth of product—and there are plenty of these spectacular deals at websites such as Clipp.com.
The national favorites
We know their logos and brands quite well when it comes to major retailers that consumers most want to receive coupons from, i.e., big box, health & beauty, jewelry giants, electronics, toys & games, clothing & shoes, home décor, pharmacy, alcohol, and pet suppliers. That’s right; the big dogs have to keep the zeitgeist tank full with their promotions because if they don’t, the next guy is always waiting to take their position at the top.
Whether it’s their incredible omnichannel experience or deals and discounts that repeat customers seek, our respondents chose Walmart (78%) as the top big box retailer, beating Amazon (73%) for that top spot.
Health & beauty retailers that came up at the top of the list are again quite well-known brands due to quality and advertising. The big favorite, Sephora, took the lead with 41%, followed by Ulta (39%).
Interestingly enough, and as mentioned above, consumers want coupons from jewelry retailers—yeah, that diamond ring or gold earrings might seem a touch more tempting if a discount were included. Zales, whose commercials are almost synonymous with Christmas and anniversaries, grabbed the top position with 34%, with Kay right on their heels with 33%. Yikes!
Few things are more enticing than a deal or discount when you need to go to the electronics store—because electronics are often expensive! Fortunately for manufacturers, our respondents are looking for variety, not a single brand, when they pick the top electronic retailer for which they would most like a coupon. Best Buy (61%) has been battling it out in the brick-and-mortar tech world and still is to this day. Meanwhile, Samsung got the most votes, besting Apple and Sony at 57%.
Whatever age one finds themselves, there is still something magical about toy and game retailers. Maybe it’s the overwhelming new toy smell or the enticing images on the outside of the boxes, but whatever it is, it never gets old. Most likely because of all the 2021 stock-sanity surrounding GameStop, when folks think about toys & game retailers they would like a coupon for, it took the top spot with 40%, with what is pretty cool since it’s a brick-and-mortar book-seller, Barnes & Noble at second with 38%.
Charge it!
This next section reminds one of a historic dad joke: How do you stop a rhino from charging? Take away their credit card! That’s exactly how it feels when you walk into a clothing & shoe retailer with discounts, sales, and deals—oh my! Possibly because they started offering Amazon in-store returns pretty early in the game, but Kohl’s took the top spot with 51%, followed by a tie-breaker between Macy’s and TJ Maxx (43%).
Relaxing at home
A happy home can be even happier with the right loving touch and style. Now that the supply chain issues plaguing many home decor retailers are finally over—it’s back to choosing the right tchotchkes or furniture set or piece to make that perfect room light up with an elegant ambiance. Wayfair got the most prominent result from our respondents (46%), closely followed by Swedish goliath IKEA (44%).
Good drugs
With Rite Aid (23%) closing stores around the United States and Amazon moving into the medical space, it’s game time for pharmacy retailers. Consistent advertising and discounts are imperative for the remaining sellers to stay viable. Walgreens (65%) is leading the pack of pharmacy retailers from which consumers would like to receive a little coupon support, with CVS (64%) holding that second-place spot just behind, itching to take over the top.
Drinks on you
While it seems like just about everything costs more these days, alcohol is no stranger to higher prices. Anyone who regularly visits the store to buy their booze has noticed that the price of their favorite spirits has increased exponentially. On both sides, even those mocktails that Gen Z has made so famous most likely carry a heftier price tag as of late. Thus, people look for relief in their wallets and bodies when they go to alcohol retailers to shop—and they want the coupons, too. Total Wine & More appears to be the one from which our respondents would like coupons with 30%, and not far behind, good old 7-Eleven (28%).
For the furries
The pet industry is projected to grow to $427 billion by 2032—that’s a lot of chuck! From YouTube to TikTok, pet videos and posts are growing increasingly popular by the second, and those precious creatures need lots of things. It’s nice when you can get all of them at the same location and get some deals and discounts. PetSmart took the top spot with 53%, but it’s neck and neck for Chewy (44%) and Petco (43%).
Shoppin’ back-to-school + gifts
As fall approaches, the school needs begin to come into focus at the same time as birthday party invites for classmates plus the holiday season—all of it quickly knockin’ on consumer wallets at this time of year. When we combine the results of back-to-school and gift shopping preferences, 68% of consumers asked choose to shop for back-to-school items and gifts at national chains (Target, Walmart, Lowes, etc.), while 62% head online (Amazon, etc.)—leaving 29%, a healthy portion of existing and potential customers out there, who like to shop for these items at local independently owned shops, grocery stores, etc.
The money-grab moment
These results undoubtedly show an excellent opportunity for small and large businesses to capitalize on these crucial moments. Consistent advertising done right, using the proper data to target the right groups at the right season with coupons and deals, is necessary. The good news is that a lot of money is on the table now for brick-and-mortar and online.
Whether shared direct mail, postcards or combining and boosting your campaign strategy with digital marketing, your local Valpak rep can help your business decide which channels (like programmatic display and mobile ads) are the most suitable for your needs to achieve your retail advertising goals.
