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Consumer Research


UK voucher use set to soar this summer

UK voucher use set to soar this summer

The summer of 2010 is being tipped as a likely all time highpoint for the promotions market – as a result of the combined effects of Iceland’s ash cloud, a troubled Euro and a domestic economy in the early stages of recovery. Promotions specialist Access Point predicts that the anticipated UK staycation summer will present a significant opportunity for canny local businesses looking to maximise the impact and enhanced ROI of promotional activity through the holiday period.

MD David Robertshaw points to a strong rise in redemption levels across a burgeoning voucher economy which will spike still further as the British choose to stay at home for the summer.

The company, which specializes in promotions and till roll advertising campaigns through leading supermarkets such as Sainsbury, Tesco, Morrisons, Somerfield , Netto and Lidl and DIY chains Homebase and Wickes, has charted sustained rises in redemption levels across the UK from April 09 to April 10.

“The climate for promotions and vouchers is vibrant now, but this summer will present a unique opportunity as people either stay at home and indulge in days out or opt for self-catering accommodation elsewhere in the UK," said Robertshaw.

"Supermarket footfall will remain strong as a result, and the general belt-tightening on household budgets will ensure that promotions and offers, particularly for the fast food, restaurant, entertainment and leisure sector will perform even more strongly."

It was today announced that a record number of UK beaches have achieved blue flag status this year which is bound to make British resorts even more attractive for a summer break – another factor that will drive promotions’ performance.

“The supermarkets dominate on pricing and promotions, but they’ve also been willing to open their customer base to local businesses selling non-competitive products and services,” said David.

“Those companies that have taken up the offer, either with promotional stands on supermarkets’ estates or vouchers on their till roll backs, have seen a significant uplift in sales and repeat business through reaching new customers.

"The economy has been a fierce driver of the uplift in redemption, but, coming out the other end of recession, vouchers are now firmly part of the shopping budget and consumer habit. We don’t anticipate that changing.”

Access Point has found that the low entry costs to till roll promotions have performed particularly well with 2-for-1 deals for food franchise outfits such as Subway, Burger King, Harvester and Pizza Hut seeing redemption rates of up to 5% - 10%.

Traditional paper-based promotions offer redemption rates of 1-2%; however put the right offer directly into a customer’s purse or wallet while they’re out shopping and the figures speak for themselves. During one month Access Point’s till roll vouchers were active across 26 areas offering consumer savings over the month of a total of £178,626,447.67.

Successful businesses are adept at ‘working’ the voucher economy and those that have done well outside of holiday time include franchise chains such as Venture photography, Specsavers and hair and beauty chain, Saks.

There’s no doubt that we’ve seen a distinct change in people’s redemption habits. The highest redemptions are afforded by the promotions that meet the right time, right place, right offer criteria, and we’ve spent time making sure we correctly marry our customers’ offers with the right supermarket.


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