WINSTON-SALEM, N.C. -- While coupon distribution in 2002 rose 3.4% to 336 billion coupons, redemption dipped 5.4% to 3.7 billion coupons, according to CMS, a provider of promotion management solutions.
ting program that entices consumers with savings. CMS noted that Brand Saver was supported by magazine advertising, tie-in promotions with retailers, a Web site and electronic newsletters.
Meanwhile, marketers increased the average face values of their coupons by $.04 to $.81. At the same time, though, they increased the amount of coupons requiring multiple purchases. More than one-quarter (28%) of all coupons now require consumers to purchase two or more products.
CMS attributed the redemption slide, in part, to economic uncertainty, which led more consumers to shop warehouse clubs, supercenters and dollar stores. Many of these channels do not accept manufacturer coupons.
Bob Carter, president of CMS, voiced optimism about couponing, saying coupons complement many other forms of advertising, trade and consumer promotion.
"Smart marketers are willing to experiment with coupon attributes to find the combination that will best appeal to the target consumer while maximizing overall coupon [return on investment] for the brand," he said.