by Michaela Mora

Posted on January 27, 2010

Response Magazine reported recently that free-standing insert (FSI) coupons emerged as a key component in promotional programs of many manufacturers and retailers during 2009 with more than 272 million pieces dropped. But what was the coupon redemption rate in 2009?

Well, it seems many cent-off coupons were put to use. The Experian Simmons National Consumer Survey showed that 7 out of 10 households used coupons in 2009. Although most were looking to save money, others used coupons to try new products. One out of two consumers claimed they used FSIs cent-off coupons, placing this coupon category at the top followed by coupons received by mail, found in packages, magazines, on the Internet or handed out in or near stores.

For many years, coupon redemption among Hispanic consumers has been reported to be lower than the general population due to a number of factors including cultural barriers, lack of familiarity with the redemption process, different product preferences, wrong distribution channels, requirement of multiple purchases, low coupon face value, and refusal to accept coupons by stores frequented by Hispanics, among others.

However, the last couple of years in a down economy may have help Hispanics to get with the program. In 2009 Hispanic weren’t too far behind the average non-Hispanic household as 6 out of 10 Hispanic households used coupons, with Cubans leading the way, followed by Puerto Ricans, other households of Hispanic heritage, and Mexicans. Nearly 4 out of 10 Hispanic consumers used coupons inserted in newspapers (FSIs) and 3 out of 10 used coupons received by mail.

Given the diversity and expected growth of the Hispanic population in the US from 15% in 2009 to 30% in 2050, there is a big opportunity for manufacturers and retailers to introduce new products to Hispanics with the help of coupons. The key is to develop promotional programs – with a coupon component – that appeal to the diversity of the Hispanic market in the US. Sensitivity toward cultural differences based on country of origin, product preferences, regional variations of the Spanish language, and levels of acculturation, among other factors can send coupons to the trash can or get Hispanic consumers to try new products.

To learn more about our consumer data service visit Consumer Shopping Behavior Insights. To request consumer shopping behavior data and insights don’t hesitate to contact us.

Sources:

- Census Bureau – Projections of the Population by Sex, Race, and Hispanic Origin for the United States: 2010 to 2050

- SMRB – Summer 2009 Adult 6 Months (Feb 09 – Sept 09)

- Jacqueline Renfrow, “FSI Couponing Reaches Record Levels,” Response Magazine, 20 Jan, 2010

by Michaela Mora

as published on January 8, 2010  by the Dallas Business Journal

Every business that wants to acquire and retain customers needs to conduct market research, particularly in these current economic times. Here are three fundamental questions about target customers that businesses should ask:

1. Will they use the product or service? Product usage is conditioned by many factors, but the most important one is whether there is a need for it. Other factors include socio-cultural trends, competing alternatives, situational factors, perceptions, attitudes and habits.

2. Will they buy it? Even if there is a need, this does not necessarily mean you can sell it at any price. There are numerous instances in which a product has great appeal, but customers are not willing to pay the price the company wants to charge. Pricing is also influenced by a number of factors beyond a company’s financial situation, including competitors’ pricing, alternatives, brand perceptions and more.

3. How will they have access to the product or service? Product awareness, positioning and distribution are keys to the success of a business. Low awareness, poorly executed marketing and brand strategies, inadequate operational systems and an inefficient supply chain will often lead to wasted resources, higher customer acquisition and retention costs and revenue loss, despite all indications that a need for the product exists and that customers are willing to pay for it.

When thinking about customers, think of perceptions, customer experience and behavior in the context of their core values, lifestyle, family situation, culture, the competitive landscape, their particular socioeconomic situation and the economic and political state of affairs that surround them.

Companies come in contact with target customers through public relations activities, advertising and promotional programs; product or service usage; and interaction with sales representatives, employees, technical support and customer service.

These customer touch points often overlap, meaning a company would benefit from a customer-centric market research plan that permits a 360-degree‐view of its target market. This will ultimately deliver insights to guide business decisions that lead to sustainability and growth.

To learn more about our consumer data service visit Consumer Shopping Behavior Insights. To request consumer shopping behavior data and insights don’t hesitate to contact us.