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News Release from: CCB fast.MAP | Subject: Coupon redemption research
Edited by the Marketingservicestalk Editorial
Team on 21 February 2008
Enthusiasm for low-value coupons
increases
Consumers have their price when it comes to what they believe to be an acceptable incentive - but, surprisingly, that price is dropping, according to research.
Half of consumers don't bother to redeem a coupon worth 20p, but 49 per cent do and 70 per cent will redeem coupons or vouchers worth GBP5 or more, according to the third annual CCB fast.MAP Marketing-GAP tracking study As coupon face value increases so does the percentage of those willing to redeem it: 57 per cent will cash a 50p coupon; and 68 per cent one worth GBP1
This article was originally published on Marketingservicestalk on 20 Feb 2008 at 8.00am (UK)
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These figures reveal a massive increase in enthusiasm for coupons since the 2006 study, when only 17 per cent said they'd redeem a 20p coupon; 23 per cent a 50p one; 29 per cent, a GBP1; and 31 per cent, GBP5.
"People are becoming more used to receiving and using coupons and vouchers delivered to their doors via the loyalty schemes of trusted retailers such as Tesco, MandS and Homebase - this is motivating them to look for and use these rewards and other lower-value, door-dropped fmcg coupons are benefiting from this overall uplift in popularity," said David Cole, MD of CCB Fast.MAP, which runs the online tracking study.
Both years, a mere seven per cent of marketers correctly estimated the GBP5 response levels and their judgment was even less astute when it came to judging consumers' attitudes to the lower-value coupons.
In 2006, 20 per cent of marketers correctly judged that around 17 per cent of shoppers would use a 20p coupon.
In 2007, only one per cent correctly predicted that around 49 per cent would do so.
In fact, in 2007, almost three-quarters of marketers incorrectly estimated that fewer than ten per cent of consumers would bother with a 20p coupon, showing that marketers have failed to recognise the growing popularity of this sales incentive.
Marketers also significantly underestimated the power of the 50p coupon in 2007, with almost half saying that fewer than a tenth of shoppers would be motivated to use one - when in fact, three fifths of consumers would do so.
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