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Coupon Usage During A Recession |
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Tough times and technology advancements portend a coupon usage renaissance among U.S. shoppers, 67% surveyed in an ICOM Information & Communications study, said they are much more likely, or somewhat more likely, to use coupons during a recession. The breakdown was 45% percent much more likely and 22% percent somewhat more likely. Over the past 10 years, the average coupon redemption rate has declined to less than 1.0%, from a level of 1.6%, across all US coupons distributed.

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Broken down by age, 71% of consumers in the 18-34 year-old age bracket
said they are much more likely or somewhat more likely to use coupons
in a recession. That compares with 68% in the 35-54 year-old bracket
and 63% among those 55 years and above.
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Geographically, 70% of Midwesterners said they are much more likely or
somewhat more likely to use coupons in a recession, versus 69% of
Westerners, 64% of Northeasterners and 62% of Southerners.
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Income didn’t make a significant difference, with 68% of
those earning less than $50,000 a year saying they are much more likely
or somewhat more likely to use coupons in a recession, compared with
67% for those earning more than $50,000.
Historically,
coupons are a key area in which manufacturers operating in economic
hard times have not cut back. In the weakened economy of 2001, current
tracking showed a significant increase in the number of coupons
consumers redeemed each week.
Among the
findings on paperless coupon technology:
* Some
58% of consumers said their coupon use would increase if they could
download a coupon from the internet and have it automatically connected
to an electronically swiped frequent shopper card.
* Of
that 58%, 35% said they are much more likely to use such a card and 23%
said are somewhat more likely. (Consumers using these paperless coupons
receive the discount at the register without having to clip and carry.
AOL, Kroger, General Mills and Procter & Gamble are involved in
programs testing these high-tech coupons.)
* No
less than 77% of consumers in the 18-34 age group said they are much
more likely or somewhat more likely to use coupons if given access to
this paperless technology. In the 35-54 age group, 63% said they are
much more likely or somewhat more likely. In the 55 and over bracket,
47% said they are much more likely or somewhat more likely.
These
advanced coupons have attracted some consumer interest and drawn media
attention. Put in perspective, online coupons of all kinds represent
less than 1% of the overall coupon market and consumers to date have
expressed a strong preference for receiving coupons in the mail. Brands
should pay close attention to determine if this technology is right for
their consumers. Marketers have the opportunity to discard the
old-school thinking about coupons and be smarter this time around.
There’s no need to send out more mass coupons, such as dog
food coupons to households that don’t have pets. Brands
should do their homework and send offers relevant to the needs of
individual consumers. And consumers should be given more time to redeem
coupons - three months is not enough.
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