’11 CPG Coupon Redemption, Savings Up Y-O-Y

January 31, 2012

nch-marketing-total-us-cpg-coupon-redemption-jan12.gifUS consumers redeemed 3.5 billion CPG coupons in 2011, representing a 6.1% increase from 3.3 billion in 2010 and a 9% rise from 3.2 billion in 2009, according to a study released in January 2012 by NCH. In addition, CPG coupon redemption in 2011 represented a significant 34.6% jump from 2.6 billion CPG coupons redeemed in 2007 and 2008. Interestingly, redemption grew as distribution declined: the 305 billion CPG coupons distributed in 2011 was down 8.1% from the 332 billion distributed in 2010.

As a result of their increased coupon redemption, during 2011, US consumers saved a total of $4.6 billion using CPG coupons from all types of media, up 12% from $4.1 billion in 2010, and representing 58.6% growth from $2.9 billion in 2007.

Non-traditional Channels Power Redemption Growth

nch-redemption-volume-2011.jpgWhile redemption of CPG coupons actually showed negative year-over-year growth of -1.8% among grocery stores in 2011, the non-traditional grocery categories of mass merchandisers (16.7%) and drug stores (37.6%) showed impressive growth.

Military commissaries also showed negative year-over-year growth in CPG coupon redemption (-4.3%), but all other grocery categories (including convenience, warehouse/club and variety/dollar stores) reported 10.1% growth from 2010.

Average Face Value Flat

The average face value of a CPG coupon in 2011 (all formats, including digital) was $1.54, remaining flat from 2010. In addition, 27% of CPG coupons in 2011 required multiple purchases, up 8% from 25% the previous year, led by grocery products (36%). Meanwhile, the average duration of a CPG coupon in 2011 was 9.9 weeks, down 4.8% from 10.4 in 2010.

Average Redeemed Value Up

nch-coupon-redeemed-value-2011.jpgAlthough marketers offered no increase in face value overall, consumers drove up the average redeemed value to $1.32 from $1.25 in 2010 by using more higher value coupons. Consumers redeemed health and beauty care (HBC) coupons averaging 6.4% higher than in 2010 ($1.83 vs. $1.72), despite a penny decline in the average savings offered by marketers ($2.09 vs. $2.10). Similarly, consumers redeemed grocery coupons averaging one penny higher than the year prior ($1.05 vs. $1.04), despite a 2.5% drop in the average savings offered by marketers ($1.17 vs. $1.20).

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