Face Value of Coupons Up 4.9%: Study
Manufacturers offered more than $250 billion in coupons in 2003, resulting in $3 billion in savings to consumers, about the same as 2002.
Total coupon spending by marketers, however, rose slightly last year to $7 billion from $6.8 billion, according to data released by the Promotion Marketing Association’s Coupon Council.
The average face value of manufacturer’s coupons increased 4.9% to 85 cents, more than double the pace of the Consumer Price Index, which increased 2.3% in 2003, the report said.
The study also found that consumers take issue with short expiration dates.
“As tight restrictions can suppress the response and ROI on any coupon initiative, businesses might consider extending expiration dates allowing for greater consumer participation,” said Charles Brown, co-chair of the Coupon Council, in a statement.
Another finding indicated that retailers are turning more often to coupon promotions to help attract, retain and reward loyal shoppers. Last year, 46% of retailers reported offering some form of bonus coupon program.
As for coupon distribution, 79% were available through freestanding inserts, 29% in advertisements and 1.5% were instantly redeemable. Direct mail, magazines, in-pack, handouts, on-pack and electronic checkout each distributed 1%. And electronic shelf and the Internet each doled out .5%.
All ages enjoy the savings coupons have to offer: 80% of 55-64 year olds; 79% (45-54); 78% (65+ and 35-44); 75% (25-34); 68% (18-24). And 80% of those with incomes of $50,000 to $75,000 reported using coupons, 79% ($25,000-$50,000), 77% (under $25,000) and 74% ($75,000+)
The study was released in advance of the start of National Coupon Month beginning today.
