Coupons enjoy resurgence in recessionary times

Coupons have begun to make a significant resurgence in the US as prolonged recessionary pressures have caused many shoppers to come up with creative coping mechanisms to stretch the family budget.

That is the key theme of the latest Checkout report, which is based on a nationally representative survey of 1,200 US adults conducted monthly by M/A/R/C Research.

The study delves into the world of the modern coupon user — who they are; how couponing fits into their lives; and more importantly, what brand marketers and retailers can do to meet their shoppers needs.

According to the report, female shoppers are driving the coupon boom through traditional media.

Across both gender groups, newspapers and direct mail/circulars hold the top spots for finding deals (62% and 58%, respectively).

However, women are more involved in clipping coupons, surpassing males in almost all coupon sources except mobile phones. But, when it comes to technology and coupons, men start to become more involved in the shopping process with coupon, retailer, and brand web sites coming in behind newspapers as places where they seek out coupons.

Most shoppers view coupons as rewards for products they typically buy as well as incentives to try new or alternative brands. Convenient and useful coupon consumption is geared toward spending less money rather than buying a larger quantity of products except for attached-coupled (married; living with partner) and lower-income households (below $50,000 annual HHI).

Female shoppers are more likely than males to use coupons as a means for trying new brands.

Coupon value is the factor most likely to drive consumers to switch from their preferred product or brand, says the report.

However, while the value of a coupon is the most compelling aspect, brands must be aware of their positioning in the marketplace and need to align their promotional couponing with their category entry strategies, say researchers. If a new product is more high-end, then extensive couponing may only cheapen the brand and tamper with the overall brand positioning.

A small percentage of respondents (3%) say the most compelling aspect of using a coupon to buy a new product is the ability to use the coupon online or save it to their loyalty card. While these digital capabilities are not yet mainstream, trends show consumers are increasingly making more big-ticket purchases online.

Shoppers seek simplicity in coupons, says the study. Instant discounts or two-for-one deals resonate strongly with consumers (75% and 72%, respectively). Shoppers want coupons that are easy to find, simple to understand, and effortless to use. Shoppers prefer coupons that word their discounts in terms of actual money off versus percentage-off type of discounts, for example.

Discounts applied to future visits as well as incentives that require multiple or bulk purchases, are the least popular coupons, says the study.

In the US, the top 10 retailers for coupons are: Bed Bath & Beyond, Target, Macy’s, Borders, Costco, Kroger, Kohl’s, Wal-Mart, The Gap and CVS.

During pre-planning and research, coupons serve as a shopping starter and trip driver and aid the shopper in the channel and retailer selection process, says the report. Retailers will identify high-value shoppers by tracking coupon redemption and incremental sales to ensure their most profitable shoppers receive the best offers in future.

The influence of coupons on brand selection is enormous with nine of out of 10 shoppers reporting coupons are at least ‘somewhat influential’ and half of shoppers saying coupons are ‘very’ or ‘extremely influential’. Females are reported to be more influenced by coupons than males.

The company perceived to offer the best coupons is Procter & Gamble, while shoppers think the best coupon deals on food and drink are from brands Kraft, General Mills, Kellogg’s and Pillsbury.