Consumer packaged goods (CPG) companies can no longer rely on traditional growth models. Amidst the magnitude and pace of change in the U.S. market, the $760 billion industry has been lagging behind other sectors with a flat annual average growth rate. With the prevalence of technological advancements, CPG brands need to quickly react to new trends. They also need to rethink entire marketing strategies to compete more effectively. Digital promotions and media platform Quotient Technology Inc. is helping many of them do just that.
Quotient Technology’s flagship consumer website, Coupons.com, also one of the leading digital coupon providers today, continues to serve shoppers with a collection of offers and discounts. The company helped consumers save a total of $5.4 billion. It happened by powering more than 3.5 billion digital coupon transactions in 2017. Its vast network of partners includes more than 2,000 brands and over 65,000 retail stores.
The end result was that Quotient Technology Inc. disrupted the promotions industry with record Q3 2018 revenue of $103.6 million for 2018, an improvement of 26% over a year ago. Innovations in media revenue and their Retailer iQ product catapulted much of the growth as CPGs shifted more of their $225+ Billion spend from offline to digital channels.
The Role of Coupons in Retail
Since their introduction in 1887, coupons have become an invaluable part of the lives of shoppers. In fact, U.S. consumers saved $3.1 billion last year using coupons. These print or digital discount tools have been playing an important role in consumer marketing for many years.
For retailers and brands, couponing is a relatively easy way to attract new customers, build brand image and gain customer loyalty. These, in turn, translate to profits. Studies have even shown that habitual coupon users are willing to purchase products with a coupon even if it means spending more money. Another survey found that four in 10 grocery shoppers had bought more than they planned to because of a good deal.
The coupon has embedded itself in the consumer psyche. It has been adapting to where, when and how consumers would like to receive a deal.
Now, CPG companies are taking the marketing tool with them as they venture into the digital arena, albeit the slow progress. Perhaps digital coupon providers like Quotient Technology Inc. can help speed up growth.
A Pioneer in the Digital Transformation of Coupons
The launching of Quotient Technology Inc. happened in 1998. It was after Founder and Executive Chairman Steven Boal saw his late father-in-law clipping coupons out of the Sunday newspaper. He learned that the industry hadn’t changed in 30 years. Steven Boal then set out to bring the multi-billion-dollar coupon business into the digital world. In 2001, Steven and his team issued their first digital coupon on a client’s website. Still named Coupons.com at the time, Quotient Technology Inc. disrupted in-store electronic marketing services and took away market share from competitors, most notably Catalina Marketing (now Catalina), who pioneered 1:1 marketing of in-store coupon delivery.
Quotient Technology Inc. continues to lead the digital transformation of the promotions industry. The company began by allowing shoppers to print offers from Coupons.com as an alternative to paper clippings. Now, Quotient Technology also delivers coupons directly to shoppers through mobile apps as one of the most notable digital coupon providers in the country. It also powers digital coupon initiatives in online marketing campaigns of major CPG brands and retailers. Quotient Technology Inc. operates Retailer iQ, a digital coupon platform that provides real-time analytics.
According to Mir Aamir, President, and CEO of Quotient Technology Inc., the company continues to accelerate, adding new solutions and enhancing technology. “Our platform combining digital promotions, media, and audience data, enables CPG brands and retailers to deliver digital marketing at high ROI effectively, and at scale,” he said in a press release statement. “We are increasingly becoming CPGs’ key digital marketing partner, as they look to shift more of their $225 billion in annual marketing spend from offline to digital.”
Quotient Technology Inc. – Providing Intelligent Marketing through Consumer Analytics
Undoubtedly, the shift to digital has brought new consumer attitudes with it. It’s something, therefore, that digital coupon providers like Quotient Technology Inc. must take into consideration as they help CPG brands compete effectively. “The No. 1 trend is changing in expectations. There is a strong desire from consumers everywhere for relevance and personalization,” said Aamir. “Their patience for messages or offers coming from any business that is not personalized is running very thin.” The best way to meet this demand for personalization is through data.
Coupons.com, Quotient Technology’s main consumer app, has wide-ranging delivery capabilities. Most notable is the platform’s deep data assets. This, therefore, enables Quotient to target offers, digital advertising, and messages to consumers who are most valuable to a brand. Quotient Technology Inc. is one of the few marketing data providers that can tie in-store purchase data to online behavior data. It is complementing this data through its recent aqusition of SavingStar which is powering its enhanced CRM Technology.
Quotient Technology Inc. is able to provide its clients with unprecedented intelligence about each consumer. The process is done by integrating online and in-store data. Knowledge about past purchases and future-purchase intent lead to better-tailored promotions. In addition, data from the platform can further optimize returns on marketing campaigns.
The Opportunity to Dominate a Growing Market
Charlie Brown, Vice President of NCH Marketing services who conducted a report on CPG trends, said that the challenge lies in delivering the right coupon media mix. “Marketers are striving to continually optimize and improve results, and when it comes to coupons, that takes a bit of art and data science to build the appropriate coupon strategy,” he noted. “Companies who strike the right balance of print and digital media can expect improved results in a transforming CPG environment.”
Based on that statement, Quotient Technology Inc. is well-positioned to take charge as the digital transformation of coupons continues. There was a total of 293 billion coupon redemptions in the United States last year. More than 18 percent of them accounted for digital redemptions. Consumers still redeem four out of five coupons from traditional media. By continuing to pursue innovations aggressively, Quotient Technology Inc. can be the primary force in increasing redemption percentage for digital. The company should not stop from taking advantage of the prevalence of mobile marketing as well.
Quotient Technology Inc.’s strong drive for growth comes from its Retailer iQ and Media solutions. It has a verified buyer audience base of over 100 million. It’s built from a comprehensive source of online and offline shopper data over the years. Now through acquisitions like SavingStar and social influencer company, Ahology, it is expanding its capabilities into paid social media solutions.
Quotient Technology Inc. is well-equipped to help more CPG brands and retailers grow in the digital age.