Consumers are redeeming coupons in totally different ways to how brands are distributing them

Consumers are redeeming coupons in totally different ways to how brands are distributing them

A few posts ago we wrote about how coupons were being distributed and redeemed in Canada. Today, we’d like to look at WHERE consumers are actually redeeming their coupons as compared to how brands/manufacturers are distributing them. The numbers below reveal quite a lot.

 

 

 

Here are numbers that correspond to how coupons are being distributed in Canada. Notice the massive focus that Free Standing Inserts have on distribution. Now, notice the abysmal focus on internet distribution.

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In comparison, here are the ways consumers actually redeemed coupons that were distributed. These numbers are not only telling but should cause change in how coupons are actually distributed over the coming years. With 86% distribution, Free Standing Inserts only received 20% of the redemption. A horrid measure given how large the distribution focus is. Now look at online redemption. With just 1% distribution, consumer redemption of all coupons was 11%!! How much redemption be online if distribution increased to just 20%?

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Seems that distribution companies and brands are focusing their efforts in the wrong areas. This is akin to local merchants still putting 86% of their marketing budget only on the Yellow Pages print directory. Which would be absurd in today’s world. Services such as Websaver.ca, Save.ca, Redflagdeals and further penetration of American coupon companies like retailmenot, coupons.com into Canada will change the above distribution weighting fairly quickly.

The bottom line, most consumers are online or mobile. Act accordingly or spend way too much money and time spinning your wheels with offline distribution.

source of data and images: D+H