If you’ve ever stood in a long checkout line, it seems as if everyone uses coupons–and they should. But in reality, of the more than 290 billion coupons distributed in 1995, only about 6 billion were redeemed, reports NCH Promotional Services, based in Chicago and New York.
That is forcing manufacturers to look at whether coupons are worth the expense. It also is spurring them to switch marketing dollars into more cost-effective product promotions. Procter & Gamble Co., one of the leading packaged goods manufacturers in the U.S. (its product line includes Folgers, Tide, Crisco, Ivory Soap and Pringles) is eliminating coupons in several New York markets this year as part of a test. P&G is one of many companies doing more targeted promotions and trying to reduce consumers’ reliance on coupons by emphasizing “everyday low pricing.”
“Targeted promotions” covers a variety of programs. It could mean coupons received at the checkout, based on purchases. Companies also are working with retailers to re-ward members of stores’ frequent buyer programs. Others are focusing on promotional events and sweepstakes.
Some are beefing up sampling programs. A recent survey by Target Marketing, a firm involved in these programs, found that 92 percent of consumers queried prefer a free sample to a coupon.
Companies also are seeking new ways to deliver coupons. Several companies are experimenting with delivering coupons electronically via personal computer. But there is at least one major hurdle to this futuristic approach: The average coupon clipper is a woman between 25 and 54 years old. The average on-line consumer is white, male and 39.
Regardless of how brands deliver coupons, remember that coupons are as good as cash. Diligent coupon clippers can save 20 percent on a shopping bill with a little planning.
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For a free copy of Philip Lempert’s Ultimate Shopping List, which will help you use coupons to save 20 percent on your grocery bill, send a stamped self-addressed No. 10 envelope to: Ultimate Shopping List, c/o Philip Lempert, Chicago Tribune, 435 N. Michigan Ave., Chicago, Ill. 60611-4041. (Allow six weeks for delivery).
