Here is some interesting data on the effectiveness of coupons in general.
Tough times and technology advancements portend a coupon usage renaissance among U.S. shoppers,
based on survey results released today by the North American target marketing leader ICOM
Information & Communications (ICOM).
Of the 1,529 U.S. consumers who responded to a recent ICOM survey, 67% 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.
ICOM’s nationwide survey of U.S. households was conducted in mid-February. The online research was sent to 40,000 households in the ICOM Shopper’s Voice database.
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 to 68% in the 35-54 year-old bracket and 63% among those 55 years and above.
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.
Income didn’t make a significant difference to respondents, 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 to 67% for those earning more than $50,000.
Historically, coupons represent a key area in which manufacturers operating in economic hard times have not cut back. In a weakened economy, ICOM tracking showed a significant increase in the number of coupons consumers redeemed each week.
“The consumer incentive certainly is there,” said Peter Meyers, ICOM marketing vice president. “Look at it this way: households of two adults and two children who use coupons wisely can save 25% on their grocery bill annually, without cutting purchases. That saves $2,400 a year based on a typical $800 a month grocery spend, which outstrips the $1,800 economic stimulus check this family has coming in May from Washington.”
“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,” Meyers said. “And consumers should be given more time to redeem coupons.”
In the area of coupon technology, 58% of consumers responding to the ICOM survey see their coupon use increasing if they could download a coupon from the Internet.
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 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.
Why search for coupons through newspapers and magazines when you can pull one up on screen and print it out right before you go out make your purchase? No more saving stacks of paper coupons that may expire at the end of the month. This saves the consumer money, saves the business money and helps the environment.
These online coupons have attracted much 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 using coupons available online. The redemption rate of that 1% is up to 90% more than traditional mass printed coupons! Businesses should pay close attention to this trend and listen to their consumers.