Changes With Coupons

David Mounts, Chairman and CEO of Inmar, says “…brands and retailers increase their investment in digital coupons… enables marketers to more effectively leverage data to deliver relevant and personalized content to shoppers… there’s still a tremendous, unrealized sales opportunity as distribution of digital coupons is not keeping pace with demand…”

In sharp contrast to the explosive growth in Load-to-Card coupon redemption, Print-at-Home (PAH) coupons suffered a significant drop in redemption falling 33% between 2016 and 2017. The fourth quarter saw a 43% drop in redemption compared to the fourth quarter of 2016.

• More shoppers have abandoned their printers in favor of a more convenient, exclusively digital, click-and-save coupon experience
• Shrinking confidence among marketers as to the effectiveness of PAH offers drove a 15% decrease in distribution of these coupons in 2017

Mounts added, “Shoppers have been making their demands known for some time. They want a shopping and savings experience that is convenient, supports their lifestyle, and delivers real value. They’re choosing digital coupons because this method delivers on all three.”

As has been the case for years, print coupons included in Sunday newspapers, known as Free-Standing Inserts (FSIs), are still very much a promotional mainstay with marketers, but are less aligned with the demands of today’s increasingly digital shopper base. In 2017, FSIs:

• Accounted for the greatest proportion of coupon distribution (90.8%)
• Saw their share of the redemption mix fall 9% since 2016, totaling 34.6%
• Were partially to blame for 9.2% decline of overall coupon redemption in 2017, compared to 2016

Though select promotion methods have declined, coupons are still extremely popular as 88% of the shoppers surveyed by Inmar reported they used at least one coupon in the last three months of 2017. In addition, says the 2018 Shopper Behavior Study, coupons have a significant impact on shopper behavior. Among those who used a coupon in the last three months of 2017, 83% report the coupon changed their shopping behavior, motivating them to buy more, buy sooner, and/or buy a brand they would not have otherwise.

Notable data points include:

• 2.1 billion coupons were redeemed in 2017
• Consumers’ digital coupon redemption rose 67%
• Marketers increased digital coupon distribution by 38%
• Load-to-Card redemption increased the most in 2017, up 67% over last year
• Print-at-Home (PAH) coupons suffered a significant drop in redemption falling 33% between 2016 and 2017

For more information and full report for purchase at Inmar Insights Marketplace in April 2018, please find Inmar’s annual Promotion Industry Analysis here.