30 June 2020

Promotions users spend more in store

Recent research run by savi has shown that shoppers who use promotions spend more in store.

Based on a study by GfK with 30,000 German households, we found that coupon users spend, on average, 16% more than non-users when shopping for grocery and health & beauty items.

It’s not simply bargain hunters who are seeking out offers before going to store. Increasingly, higher income ‘sophisticated’ and ‘flexible’ shopper types are also being drawn in by promotions and using these during their weekly shops.

This new data proves that retailers benefit by accepting brand-funded promotions in store, no matter who their target audiences is. In the face of increasing competition from discounters, it’s important that retailers find ways to create additional value for themselves and their customers. Using brand promotions have proved effective in this with one of our retail partners growing their loyalty base by 12% by integrating promotions to their app.

Another interesting trend that we are seeing across Europe is the rise of promotions in pharmacies. Key OTC brands are winning new customers by running in-store (shelf and display promotions) as well as offering coupons on their digital channels. An independent research study by Bormann Gordon proved that couponing achieves a 55% higher ROI than other in store promotions in pharmacies. We’ve seen this trend also apply in pet care and dentistry, where brands are gaining the support of specialists in promoting their products to shoppers.

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