Coupon Redemption at All Time High
Consumers are looking to save money wherever they can and
they’re clipping coupons at a furious pace, nearly $2 billion worth in the
first half of the year, according to NCH Marketing Services (a division of
The number of coupons put out by brand marketers jumped 11.4 percent
versus the same period last year and nearly 25 percent higher than in 2008.
Health and beauty care marketers put out 20.8 percent more coupons year-over-year
while grocery was up 6.7 percent.
Marketers were looking to build a sense of
urgency with coupons by increasing the value (up 4.4 percent) and shortening
the period they could be redeemed by nearly a week-and-a-half (9.5 weeks) over
last year (10.9).
Redemption rates are also higher with a number of “alternative” channels
getting in on the act. NCH reports that convenience stores, dollar stores and
warehouse clubs redeemed coupons at a 36.6 percent higher rate. Grocery, drug
and mass still continue as the coupon heavyweights with 90 percent of all redemptions
coming through these channels.
The vast majority of consumers continue to get
their coupons through FSIs (85 percent) while online sees the biggest percentage
gains over a low base. Coupons clipped online represent just over one percent
of the total today.
Discussion Questions: Will coupons continue to grow as part of the advertising/promotional
mix for brand marketers and retailers? What do you see as the positives and negatives
associated with increased use of coupons by both brands and consumers?