Friday, February 12, 2010

Coupon Marketing is Up 27%... Are You Offering Coupons?

Are you looking for a marketing strategy that works in the current economy, try the tried and true coupon. In fact, coupon use is up 27% according to the nation's leading coupon processor, Inmar.

2009 was first year in the last 17 where coupon redemption increased. Part of the increase may result from marketers' increased use of coupons as a promotional vehicle to drive sales during the downturn. Manufacturers increased the number of coupons by 30%.

According to Inmar's Matthew Tilley, “Brands saw coupons as a key to maintaining brand strength. 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.”

Jesse Aversano from News America Marketing, a coupon book publisher, notes, “manufacturers understand that in a tough economy, coupons are an effective and efficient way to spend their advertising dollar.”

In short, market more during a downturn, not less, When customers are harder to find, increase efforts to market to new and existing customers.

Coupons represent an effective tactic because people are looking for value and savings and marketers are looking or results.

Not surprisingly, given their lower costs, digital coupons usage is up dramatically. Coupons Inc reports an increase of 170% in the printed value of coupons.

Citing Simmons Market Research studies, Coupons Inc notes that "more than 45 million American consumers are now using online coupons, up from 38 million in 2008. Of the 45 million online coupon users, almost one third (13.1 million) does not clip coupons from their Sunday newspaper, a 140 percent increase over 9.4 million in 2008."

What does the digital coupon redeemer look like? Here are a couple of characteristics...

  • Higher income ($97,000 household income, which is 23% higher than average)
  • Better educated (34% have a college degree, compared to 27% of the general population)

When was the last time you advertised, mailed, or emailed a coupon?

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