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BizReport : Ecommerce archives : February 10, 2012

Coupons helped Americans save $4 billion in 2011

With Sunday circulars, online outlets and QR code adoption by brands it should come as no surprise that coupon clipping and redemption is up. But data from NCH's latest Coupon Facts shows a 26% increase in the offering of coupons and a 58% increase in redemption rates.

by Kristina Knight

Their research shows that in 2011 CPG brands issued $470 billion in coupon value, a 26% increase over the pre-recessionary 2007 release; meanwhile consumers redeemed more than $4.5 billion in coupon savings, a 58.6% increase from 2007 - even though the average face value of coupons remained the same as in 2007. That face value is $1.54 (average).

The clipping looks like this:

• 2007 285 billion coupons offered
• 2008 281 billion
• 2009 311 billion
• 2010 332 billion
• 2011 305 billion

Interestingly enough there were fewer grocery coupons 'out there' (13% decrease) in 2011, finds the report, while Health and Beauty brands kept their coupon distribution level.

"Consumer shopping behavior has been forever impacted by the slow economic recovery as savings habits have become a way of life," said Suzie Brown, Valassis Executive Vice President, Sales and Marketing. Valassis is the parent company of NCH. "Recognizing this increased demand, marketers continue to be strategic in their promotional strategies to deliver value while still promoting loyalty and meeting their brand objectives in a highly competitive environment."

The top 5 categories for distribution were:

• Hair care, 9.5% increase
• Eye care treatment, 29.1% increase
• Candy/Gum, 17.7% increase
• Cosmetics, 18.1% increase
• Butter/Margarine, 32.9% increase

As for how coupons are collected, the bulk are still clipped from newspapers. Free standing inserts accounted for 89% of all coupons according to the report; redemption rates for those insert coupons were 11.1% (Grocery) and 25% (Health and Beauty). Online coupons, meanwhile, account for only about 1% of all coupons distributed, finds NCH.

Tags: coupon trends, ecommerce trends, NCH Marketing, online coupons

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  • We dont have the electronics in this list. A re-affirmation that consumer spending is still towards the food and personal hygiene sector.

    Another interesting slicing of this data would be to know the demographic details - age, sex etc of these couponers.



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