Consumers Are Saving Less From CPG Coupons This Year, As Marketers Tinker With Strategies

August 1, 2013

This article is included in these additional categories:

CPG & FMCG | Food & Restaurants | Mobile Phone | Promotions, Coupons & Co-op | Radio

NCH-Marketing-CPG-Coupon-Savings-H1-2009-H1-2013-Jul2013While more CPG coupons were distributed in the first half of this year than in the first half of any year since 2010, the number of coupon redemptions fell by 8.1% and overall savings were down by 10% to $1.8 billion, according to [registration page] NCH Marketing Services. Several factors contributed to the drop in redemptions and overall savings, as marketers adjusted their coupon strategies, shortening their average offer durations and increasing multiple purchase requirements in the non-food category.

Consumer savings from CPG coupons – at $1.8 billion during the first 6 months of the year – are at their lowest point since the first half of 2009. That’s despite the average face value of a coupon only dropping to $1.27 (from $1.31 in H1 2012 and $1.28 in H1 2011).

The drop in savings owes itself more to the 8.1% decline in redemptions. And that is partly the result of marketers shortening the average offer fuse from 9.3 weeks in the first half of last year to 9 weeks this year. What’s more, there was an increase in the proportion of non-food coupons that required multiple purchases, from 17% to 18%. Non-food product coupons were distributed in greater amounts in the first half of this year, representing 62.5% of total distributions, such that the increase in proportion of multiple purchase requirements translated to a greater volume of coupons with those terms.

Besides tinkering with the promotion terms, marketers are also seeing an increase in digital coupon redemptions, with “internet print at home” coupons accounting for 6.1% of all redemptions in the first half. Paperless (C2C and mobile) coupons accounted for 2.5% share of all redemptions, still fractional, but a big increase from 1.3% in 2012 overall. There’s reason to believe they might continue to grow: recent survey results from Google indicate that 4 in 10 coupon users had recently abandoned a purchase because they forgot a coupon at home, a problem that could presumably be solved by the use of mobile coupons.

About the Data: Coupons distributed and redeemed in the U.S. Consumer Packaged Goods (CPG) marketplace are studied utilizing NCH’s manufacturer client databases, data cleared via the NCH retailer processing operation and other independent sources. NCH’s proprietary methodology utilizes rigorous controls and statistical standards to maintain the integrity of the information contained in its report, as well as all other information tools supplied by NCH.

Data points from client and market sources are dynamic. As such, projections are based on the most current information available at the time of publication and may be revised in the future. Also, due to rounding, the sum of certain percentages may not equal 100 percent. The scope of the report includes Manufacturer Coupons of all paper and paperless media formats that are most typically funded by CPG marketing budget allocations for consumer promotion. Retailer In-Ad coupons are not included in the report, as they are most often funded by trade dollars. Consequently, In-Ad distribution and redemption are less precisely tracked by manufacturers.

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