RetailSails

Not surprisingly, coupon redemption among consumers surged during the recession. According to transaction processing firm Inmar, 27% more consumer packaged goods coupons were redeemed in 2009 compared to the prior year and coupon usage has logged 5 straight quarters of double-digit growth. After 17 years of flat or declining coupon usage, consumers redeemed 3.3 billion consumer packaged goods coupons in 2009, the highest amount since 2003.

Marketers turned to coupons more than ever in 2009, issuing 367 billion coupons compared to 317 billion the year before and the highest level recorded since the company began tracking trends in 1988. “Brands saw coupons as a key to maintaining brand strength,” said Matthew Tilley, Director of Marketing for Inmar’s promotion services division. “If they reduced their promotional presence, they stood to lose sales to lower priced competitors and store brands – so they doubled down hoping to create brand loyalty once the economic dust settles.”

Online coupon usage has exploded over the past year with the rise of coupon distribution sites, social networks and Twitter – Inmar said internet distribution increased 92% and consumer redemption of these coupons was up over 360%. Jesse Aversano, EVP of Marketing at News America Marketing (the company behind the SmartSource Magazine coupon inserts and consumer coupon site smartsource.com) said “The weekly prints from SmartSource.com are more than double what we saw a year ago, which was double what our 2007 numbers were. However, in spite of the meteoric rise in online and digital couponing, the traditional newspaper-distributed FSI still accounts for 89% of all coupons distributed and over half of the coupons redeemed.”

This is likely to change along with the exponential growth expected in smartphones and internet-enabled devices. Many retailers are testing or have already rolled out mobile coupons scanned at the register and paperless receipts delivered by email. Online and mobile promotions will overtake paper coupons in the near future, and the fast-moving technology adoptions we are witnessing will enable manufacturers and retailers to more efficiently connect with consumers.

Here are some interesting coupon facts you might not know:

• 75% of all respondents stated that coupons had at least some influence on their decision to purchase a new product (Food Marketing Institute “2009 U.S. Grocery Shopper Trends”).

• In the first six months of 2009: 68% of U.S. households used a coupon, 81% of all units purchased with a coupon were bought by 19% of all households, affluent households tend to be heavier coupon users (Nielsen “Manufacturer Coupon Sourcing” study)

• The number of shopping trips for coupon users is increased by a factor of 2.5, and each trip to the store by a coupon user means 17% more revenue for the retailer (Inmar).