Coupon redemptions double in three years
The growth in coupon redemptions is continuing strongly, according to the latest industry data released by Valassis, the UK’s largest coupon and voucher services provider.
The latest analysis from Valassis, which manages more than 85 per cent of FMCG coupons, covers the first of half of 2012. It shows that coupon redemptions are up 14 per cent with nearly 225 million coupons redeemed compared to 195 million in the second half of 2011.
When redemptions in the first half of 2012 are compared to the first half of 2009, they grew from 115m to 225m. This represents a 96 per cent growth in just three years – redemptions almost doubled.
The Valassis analysis of 2012 half year coupon redemption data also shows that:
- The trend of significant growth in coupon redemptions (44 per cent growth from 2009 to 2011) is continuing.
- The growth has mainly come from retailer issued coupons and vouchers, which grew by 84 per cent compared to the first half of 2011 and 58 per cent growth year on year (YOY)
- Retailer coupons grew by 78 million redemptions to over 170 million coupons
- Retailers now account for over three quarters of coupons redeemed – in 2011 it was two thirds of coupons redeemed
- Redemptions of manufacturer issued coupons have recently shown modest growth (7 per cent) after many years of slow decline. However, in recent years manufacturers have significantly moved away from issuing their own coupons to working with retailers and using retailer loyalty programmes as the distribution channel.
Charles D’Oyly, Managing Director of Valassis commented:
“The powerful ongoing growth of coupon usage and redemption is one of the more remarkable trends in FMCG marketing in recent years. Coupons have been at the heart of so many marketing communications and campaigns, driving consumer behaviour and spending when shoppers might well have held back.
Redeeming coupons is now habitual across all demographics. With redemptions almost doubling in three years and still increasing strongly, this is testimony to the importance of this phenomenon.”