Owed to the recent economic turmoil, many people turned into coupon clipping to save money. However, since the economy has improved, that has greatly changed. In response, stores are taking a new stance on coupons. In August, the daily practice of doubling the values of coupon was discontinued by several grocers, including Meijer. Grocers have decided to push customers into using digital coupons linked to loyalty-card programs. The move to digital is more linked to the goals of the manufacturer than a reduction in the rate of coupon clipping.
Change in Strategy
Marketers have adjusted their strategies following the years driven by recession and unusual redemption growth. In the year 2012, coupon redemptions reduced by 14.3 percent. This is regardless of the fact that the number of coupons issued by manufacturers was roughly the same as that issued in the previous year. A typical company conducts an analysis and processing of more than 2.3 billion coupons annually. In the first half of this year, the use of coupons was down by 6.6 percent. This is despite a slight increase in the distribution of coupons by manufacturers.
Effects of Rise in Coupon Redemption
The earlier sharp increase in coupon redemptions served a major blow to marketing budgets of many manufacturers. It also made it difficult for manufacturers to create a balance between the coupon costs and the rising prices of commodities. Marketers are putting out less attractive offers to slow the rates of coupon redemption. In addition, manufacturers are shortening the life spans of the coupon and giving away coupons for novel products instead of products that customers buy on a regular basis. The major question is whether digital coupons will eclipse paper coupons in the next years.