Current coupon redemption trends

by Penny on 21/09/2012

The growth in coupon redemptions is continuing strongly, with our latest analysis showing that coupon redemptions are up 14 per cent with nearly 225 million coupons redeemed in the first 6 months of 2012, compared to 195 million in the second half of 2011.

You can read the full report here.

Looking at distribution via door to door, the first six months of 2012 show an increased redemption rate compared to the same period last year, with the redemption rate in May this year more than double the rate for the same month in 2011 (2.1% to 4.3%).

With the increase in redemptions comes a greater focus on the planning and delivery of coupons within marketing campaigns.

When clients take the trouble to plan and target the distribution of coupons within their campaigns, their objectives are more likely to be achieved.  Most brands have a good idea of the key characteristics of their customers, what they are not always good at is building this understanding into their targeting strategy.

There are various tools available to help achieve this, for example postcode segmentation solutions such as MOSAIC, ACORN & CAMEO and even individual level targeting solutions.  These provide invaluable insights into the demographics of neighbourhoods and behavioural characteristics of consumers.

When incorporated into a door drop campaign, it is possible to ensure that only those areas with a high propensity of the target customer types are targeted.

This will inevitably ensure reduced wastage and better return on promotional investment.

In addition to this, there are neat ways of tracking the redemption of coupons at an individual level.  Knowing who has redeemed what offer, where and when provides powerful learnings for fine tuning future campaigns.

The insights gained from targeting solutions allow a brand to drill down not only into the socio demographics and lifestyle of a consumer, but also data relating to individual shopping habits and proximity to retail outlets.

Coupon issuers can incorporate this information to get the right offer to the right people at a time when they will be most receptive.

Planning and evaluation is crucial. It helps to unearth new opportunities to optimise return on investment and achieve brand objectives in the marketplace. If redemption data is carefully analysed, there is valuable, actionable insight to be gleaned.

penny dryden.

Penny Dryden

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– who has written 1 posts on Letterbox Consultancy for Door Drop Marketing.

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{ 1 comment… read it below or add one }

rosie baynes January 22, 2013 at 2:59 pm

great read and very insightful

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