Could adding money-saving coupons to the products they sell help distributors grow profits? Perhaps. It seems tough economic times and technology advancements are driving a coupon usage renaissance among United States shoppers.
A recent survey of 1,529 U.S. consumers conducted in mid-February by Toronto-based ICOM Information & Communications (ICOM) revealed 67 percent are more likely to use coupons during a recession—45 percent much more likely, and 22 percent somewhat more likely.
Broken down by age, 71 percent of consumers in the 18 to 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 percent in the 35 to 54 year-old bracket and 63 percent among those 55 years and above.
Geographically, 70 percent of Midwesterners said they are much more likely or somewhat more likely to use coupons in a recession, versus 69 percent of Westerners, 64 percent of Northeasterners and 62 percent of southerners.
Income didn’t make a significant difference to respondents, with 68 percent of those earning less than $50,000 a year reporting they are much more likely or somewhat more likely to use coupons in a recession, compared to 67 percent 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 the weakened economy of 2001, 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 percent 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 – three months is not enough.”
In the area of coupon technology, 58 percent of consumers responding to the ICOM survey see their coupon use increasing if they could download a coupon from the Internet and have it automatically connected to an electronically swiped frequent shopper card.
Of that 58 percent, 35 percent said they are much more likely to use such a card and 23 percent indicated they 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 percent 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 percent said they are much more likely or somewhat more likely. In the 55 and over bracket, 47 percent 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 percent of the overall coupon market, and consumers to date have expressed a strong preference for receiving coupons in the mail,” Meyers said. “Brands should pay close attention to determine if this technology is right for their consumers.”
For more information, visit www.i-com.com.
- People:
- Peter Meyers
- Places:
- Toronto
- United States