Just last week, I noted the use of two promotion tactics, traditionally used
by product manufacturers and big retailers, now supporting the service
industry and neighborhood retailers. CVS had a direct mail coupon flyer
with two 20% off coupons — each good on one day only for the pharmacy with
a bonus coupon for talking to the pharmacist, which required his initials.
CPG coupons for the drug store – not new – but a chat with the pharmacist?

The other interesting approach is Discover Card’s promotion of neighborhood
dry cleaning services. Distributed in a full page FSI, Discover Card is
offering five entries to win $1 million if you use your card with a dry
cleaning, tailoring, or laundry service. Interesting idea, promoting an
industry segment of service providers, not a specific brand. I wondered if
they were approached by a national association for dry cleaning to help
promote their members!

What’s next? Meet the accountant, dentist, doctor, personal trainer? Use
your credit card at shoe makers, barber shops, nail salons?

It’s interesting to see traditional tactics morph into a new use. — Bonnie Carlson, President, PMA

A recent press release from Inmar indicates that, for the first time in 17 years, more coupons were redeemed in 2009 than the year before.  In fact, coupon redemption increased an astounding 27% over the 2.6 billion redeemed in 2008.

Some points to note:

• Brands issued 367 billion coupons in 2009
• Average face value was $1.44
• Internet distribution of coupons was up 92%
• Newspaper-distributed FSIs still account for 89% of all coupons distributed and over half of coupons redeemed
• Face values declined by $0.01, reversing a multi-year trend of increasing values
• Expiration periods were shortened by 10%, despite years of virtually no change

Read the full press release here.