INSTANT-REWARD COUPONS SHOW REBOUND: NCH SEES MORE IN-STORE DECISIONS BY CONSUMERS

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Coupon distribution and redemption continues to fall, but activity is increasing for certain types of coupons.

Consumers redeemed more instant, on-pack and cross-promotional coupons last year compared to 1995, according to an annual NCH Promotional Services survey.

Newspapers Decline

The results suggest consumers are making more in-store purchasing decisions, despite a steady decline in the distribution and redemption of coupons circulated through newspapers.

The total number of coupons distributed last year dropped 8%, to 268 billion in 1995, while total coupons redeemed fell 8.6%, to 5.3 billion, NCH reported.

Redemption rates of instantly redeemable coupons climbed to 34.4%, compared to 31.8% in 1995. Redemption rates of on-pack coupons, usable on the next purchase, increased to 9.9% from 9.2% the previous year.

Redemption rates for on-pack cross-promotional coupons-that is, those distributed on one product but redeemable on another-increased to 4.4%, from 3.7% in 1995.

Overall electronic-coupon redemption held steady at 7.9%, while redemption of at-shelf cou-pons-such as those distributed by ActMedia-declined to 10.8% last year, compared to 12.2% in 1995.

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