Economic Volatility Continuing to Affect Distribution and Redemption
Winston-Salem, NC, January 30, 2013 – Inmar, a company that operates intelligent commerce networks, announced today that some 3 billion coupons for Consumer Packaged Goods were redeemed in the U.S. in 2012 – down from 3.5 billion redeemed in 2011. This is in parallel to a marginal drop in distribution volume. In 2012, marketers distributed 310 billion coupons as compared to 2011 when 313 billion coupons were pushed out to consumers.
Free-standing inserts (FSIs) continued to be the preferred method of distribution, with 88.8 percent of all coupons distributed via this method. FSI-distributed coupons also made up the lion’s share of coupons redeemed with 43.9 percent of all redeemed coupons coming out of this media vehicle. Redemption of coupons distributed in-store (instant redeemable, electronic checkout, shelf pad) was significant as well, with these coupons collectively accounting for 32.2 percent of total redemption. For digitally discovered coupons (print-at-home, Load2Card), their redemption represented 4.6 percent of coupons redeemed.
As for the 3 billion coupons redeemed, coupons for food products redeemed at a 2-to-1 ratio over coupons for non-food items. This particular redemption activity continues a long-seen trend in coupon use.
In assessing potential causes for the drop in redemption, Inmar Analytics identified several “belt tightening” behaviors among marketers that could be influencing shopper behavior and coupon use. The redemption period for coupons continued to contract, with the time allotted to shoppers to use coupons shortened to an average of 2.2 months, down from 2.4 months or 8.3 percent when compared to 2011. At the same time, the average face value fell again to $1.56, dropping 1.9 percent from last year’s $1.59 average. And, finally, purchase requirements rose, on average, a full 4 percent.
“Coupons continue to be popular with consumers,” says Inmar CEO David Mounts. “Redemption trends are influenced by a number of factors including the perceived attractiveness of the offers available,” continued Mounts. “As advertisers focus on delivering value for their consumers and companies, it is more important than ever to optimize through careful analytics and understanding of consumer behavior while planning campaigns.”
Inmar has been in the promotions industry for more than 30 years and currently processes and analyzes more than 2.3 billion coupons and related campaigns annually, making it an expert in planning, executing and measuring promotions. In addition to providing promotion management, coupons processing, business intelligence and consulting, Inmar closely monitors coupon distribution and redemption across the country and regularly reports on trends and activity in this sector.
As part of its efforts to effectively disseminate information regarding coupon activity, Inmar will host a webinar, “2012 Coupon Trends – Insights and Analysis,” at 11:00 a.m. EST, February 19, 2013.
In this webinar from Inmar Analytics, shopper engagement expert Devora Rogers will present statistics and trends in coupon distribution and redemption from 2012. She will also offer insights as to the causes, effects and future implications of last year’s coupon activity and what it means for brands, retailers and shoppers. Rogers, formerly Group Director for IPG’s Shopper Sciences, will share data from Inmar’s annual coupon report and 2013 shopper insights study while providing analysis and assessment to inform promotional planning for 2013.
The webinar is open to all interested parties, and there is no cost to attend.
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