Quotient Study Reveals Consumers Favor Discount Percentage Over Dollars Saved in Digital Promotions

Rhea-AI Summary

Quotient has released its 2022 Promotions Report, analyzing data from over 100,000 promotions across more than 800 brands and 128 product categories. The report identifies five key variables impacting promotion performance: Category, Scale, Offer Value, Effective Discount, and Required Purchase Quantity. Findings reveal that promotions requiring a purchase of three or more items lead to higher redemption rates, particularly for non-perishable goods. Additionally, larger campaigns tend to achieve more consistent results and attract higher activations across specific categories.

Positive

• The report is based on extensive data from over 300 CPG companies, enhancing credibility.
• Identifying five key variables for promotion performance offers brands actionable insights.
• Promotions with greater scale showed more consistent results, indicating better forecasting potential.

Negative

• There is a risk that brands may overemphasize bulk promotions which may not be suitable for perishables, potentially alienating certain consumer segments.
• The reliance on effective discount could limit flexibility in promotion strategies.

Quotient’s 2022 Promotions Report combines three years of data from more than 100,000 promotion offers across multiple channels to better understand how the characteristics of a promotion can influence activation, redemption and impact

SALT LAKE CITY--(BUSINESS WIRE)-- Quotient (NYSE: QUOT), the leading digital media and promotions technology company, announces today that it has released its 2022 Promotions Report that details its most important variables of high-performing promotions learned from the study and provides insights and recommendations to help brands and advertisers effectively plan and develop promotion strategies for the year ahead.

Quotient’s study examined campaign data from 300 CPG companies representing more than 800 brands and 128 product categories across drug, grocery, mass merchandiser and dollar store channels. The insights unlocked by this data are vital for advertisers to fine-tune their digital promotion strategy and maximize overall performance goals. Additionally, the report notes tactics that are essential for a data-driven approach, including when to use demographic information and purchasing behaviors to target value-driven consumers who have shown prior interest in a specific product or category.

Some high-level findings from the Quotient report include:

• There are five key variables of promotion performance. These include Category, Scale, Offer Value, Effective Discount and Required Purchase Quantity. All variables except for Category can be changed and optimized for improved outcomes.
• Quantity matters. Shoppers who activate promotions that require them to purchase three or more products are more likely to redeem those offers.
  • It is important to note, however, that the bulk purchase activation is highest among non-perishable, shelf-stable items consumers can ‘stock up’ on, as opposed to perishables that need to be consumed more quickly.
• Offer value plays a major role in redemption rates. Quotient data found that even when offer value is high, consumers are less likely to redeem if the effective discount is insufficient to the price of the product itself.
  • Scale is key for accurate campaign forecasting. While national and shopper marketing campaigns delivered comparable incremental dollars per activation, the Quotient study found that promotions with greater scale achieved more consistent results due to their ability to reach more consumers. National campaigns attracted the highest activation levels within the beverage, food and healthcare categories. By contrast, shopper marketing campaigns saw highest activations in personal care, household and pet products.

“We are happy to share the results of an in-depth analysis of over 100,000 promotions. As we begin 2022 and value remains top of mind for consumers, delivering effective and efficient promotions will be paramount,” said Steven Boal, CEO at Quotient. “We hope the insights and recommendations we lay out empower brands to confidently launch promotional campaigns across various platforms to maximize success.”

Brands and retailers can find more information on partnering with Quotient for digital media and promotions by visiting www.quotient.com.

About Quotient

Quotient (NYSE: QUOT) is the leading digital media and promotions technology company for advertisers, retailers and consumers. Our omnichannel platform is powered by exclusive consumer spending data, location intelligence and purchase intent data to reach millions of shoppers daily and deliver measurable, incremental sales.

Quotient partners with leading advertisers and retailers, including Clorox, Procter & Gamble, General Mills, Unilever, CVS, Dollar General and Peapod Digital Labs, a company of Ahold Delhaize USA. Quotient is headquartered in Salt Lake City, UT and has offices in California, Cincinnati, New York, Bangalore, Paris, London and Tel Aviv. For more information visit www.quotient.com.

Quotient is the registered trademark of Quotient Technology Inc. in the United States and other countries.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220112005189/en/

Brands2Life on behalf of Quotient

Rich Gallagher

347-229-2482

quotient@brands2life.com

Source: Quotient

FAQ

What are the key findings of Quotient's 2022 Promotions Report?

The report outlines five key variables affecting promotion performance: Category, Scale, Offer Value, Effective Discount, and Required Purchase Quantity.

How many promotions were analyzed in Quotient's 2022 report?

Over 100,000 promotions were analyzed across more than 800 brands.

What types of companies contributed data to the 2022 Promotions Report?

Data was gathered from over 300 CPG companies across various channels including drug, grocery, and dollar stores.

What is the impact of offer value on redemption rates according to Quotient?

High offer value does not guarantee redemption; if the effective discount is insufficient, consumers are less likely to redeem.

How does promotional scale affect campaign results?

Promotions with larger scale tend to yield more consistent results and reach more consumers, enhancing campaign effectiveness.