In this webinar from Inmar, promotions industry expert Matthew Tilley will present the latest statistics and trends in coupon distribution and redemption to help you assess activity from the last few months and better determine how coupons can be part of your success.
Tilley, with more than 10 years of CPG promotions experience, will share data from Inmar’s annual coupon report (and information from a host of industry sources) while offering insightful perspective as to what is happening and what we can expect in the year ahead.
10. For more information:
Matthew Tilley
Matthew.Tilley@inmar.com
336.631.2524
www.inmar.com/couponreport
@matthewjtilley
Editor's Notes
Welcome to the first quarter update to the coupon industry from Inmar. I plan to give you some highlights of the numbers, offer some perspective and guidance and introduce you to a few tools along the way. For those of you new to Inmar or maybe unfamiliar with our annual coupon trends report, this is one of the quarterly updates we do on the coupon industry. You can download the annual report we produce by visiting our website: www.inmar.com/couponreport. There you will find that full report as well as some other coupon trends resources that you may want to reference.Right now, I’m going to give you a quick overview of how the industry is moving now that we’re three months into 2012.We look at CPG coupons in the US. Does not include store issued coupons or QSR coupons or local coupons. We do refer to “in-ads” but we’re only talking about manufacturer funded in-ads, not retailer funded.
The big story is coupon redemption.At the end of 2011, we reported a 6.1% increase in redemption over the course of the year and I anticipated that we would see continued strong coupon response through the rest of 2012.But in the first quarter, we’re seeing redemption down 7.2% vs. the same period last year.
The most apparent metric of this is the distribution level. While we were down 7.5% at the end of 2011, in the first quarter, while still down, the decline has levelled out some to 1.5%
What makes this news is that overall, coupons are solidly part of a new normal. A 5-year trend shows nearly 35% growth in coupon response (since 2006). We are definitely on the upswing … not just this year, but generally.
Other tactically levels – face value, purchase requirements and redemption periods – don’t seem to be having much of an effect, positively or negatively.But they are worth noting:Face values are essentially flat Purchase requirements were up a littleRedemption periods were down quite a bit, but still inline with the annual average of 2.4 months
So there are economic pressures that are encouraging more coupon use … but prices aren’t really one of them. Instead, it’s the unemployment rate. So, given that it’s starting to trend down in recent months, the open question is what kind of impact will that have on coupon use?
In short, the tactics had a pretty big impact on the bottom line redemption number … largely due to the pullback in distribution in the fourth quarter.
While that’s good for the overall economy, it does beg the question of how shoppers will think about promotion when things are good again. All things being equal, if the improving unemployment continues, redemption is likely to drop. Maybe digital and some of the new tactics available are the way to supplement your marketing plans to keep them interested and engaged?
Thank you for your time and attention. I hope this session was useful to you and gave you some helpful insights and tools. Please contact me with any questions and follow me on Twitter.We’ll be back next quarter with an update on how things are going.