Coupons Court a Comeback

Prior to 2009, coupon redemption had been on a precipitous, three-year decline. But there’s nothing like a recession to motivate shoppers to renew their clipping and clicking for savings.

According to a Nielsen report issued last month, coupon redemption soared 27 percent in 2009, the second-highest annual growth rate ever recorded. The findings indicate that newspapers remain the main source of coupon distribution (89 percent) and that newspaper inserts account for the majority of coupons redeemed (53 percent). Meanwhile, redemption rates on the Internet rose 263 percent last year.

Though the gains are apparent, the report indicates that the use of coupons remains concentrated among a narrow audience: 22 percent of households were responsible for 83 percent of units bought with coupons. Another eyebrow-raising statistic: The households most likely to take advantage of coupons tend to be more affluent, educated and suburban.

Additional highlights from the research:
• All channels -- including dollar stores, mass merchandisers, convenience stores and drug stores -- posted double-digit redemption growth.

• Coupon enthusiasts -- the heaviest users -- drove a disproportionate amount of sales and sales growth, shopping more frequently and buying more. While some may think these heavy coupon users are only interested in a good deal, Nielsen's findings suggest real benefits accrue to manufacturers and retailers deploying coupons in their marketing mix.