Coupons may have once been on the brink of extinction, but after a three year downward trend in redemption, 2009 finally witnessed some changes. As an article on Nielsen.com summarizes, coupons work - not just for the consumer - but the retailer and manufacturer as well.
Previously, coupon redemption peaked in 1999 reaching 4.6 billion, a figure which has since declined significantly. This figure was only 2.6 billion in 2008. But due to the economic recession and the recent proliferation of online coupons, the redemptions have sky-rocketed while the frustrating scissors and paper clippings have gone by the wayside. In fact the 27% year-over-year growth in 2009 was the second highest ever recorded.
The following table breaks down how much the redemption of each form of coupon grew in 2009:
You would think that a majority of the coupon redemptions would come from low income households, but that does not appear to be the case. 38% of “super heavy” users and 41% of those labeled “enthusiasts” are from households earning $70,000 or more annually. Finally, those households making $100,000 or more were the real drivers of overall coupon growth in 2009. The graph below charts this out.
Further research shows that three-fourths of coupon users are white. In fact, the heaviest coupon users tend to live in affluent neighborhoods, while non-users likely reside in rural areas or low-income metropolitan regions. Better-educated people also tend to read the newspaper more which is still a popular way to deliver coupons. With a few adjustments and more sophisticated targeting tactics, retailers and manufactures can reach a market that remains largely untapped.
The question still remains: with the economy seeing improvement, will we see consumers continue to use coupons? Nielsen's experts suggest that “…as long as Americans feel unsure about their personal finances or confident about their jobs, they are going to continue to look at ways to save and get the most for their money.” They also believe that as retailers and manufacturers continue to develop new ways to distribute coupons, the redemption growth will continue to increase for at least the next few years.
Via Nielsen
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