Coupon Distribution: FSIs Deliver
otential of targeted in-store coupon distribution vehicles, such as electronic POS and shelf-based systems, but freestanding inserts remain the overwhelming choice of manufacturers. Rather than declining, the percentage of total coupons distrubuted via FSIs increased last year to 88%. FSI rates held constant at 88% during the first six months of 1994.
Percentage of Total Coupons Distributed
1991 1992 1993
Freestanding
Inserts 84% 86% 88%
Direct Mail 4% 3% 2%
Handouts 2% 2% 2%
Elec. POS &
Shelf-Based
Systems 1%
Coupon Redemption: New Systems Gaining
Freestanding inserts remain the dominant form of coupon distribution, but their redemption rates are falling. In 1993 FSI redemption rates fell to 2.1%, and during the first six months of 1994 FSI rates dropped to 2.0%. In comparison, in-store electronic POS and shelf-based systems are succeeding in generating stronger coupon redemption rates.
Redemption Rates of Selected Couponing Systems
1991 1992 1993
Freestanding
Inserts 2.3% 2.3% 2.1%
Handouts 4.0% 4.1% 4.2%
Shelf-based
Systems 10.1% 13.0%
Elec. POS 7.9% 7.9% 8.5%
Direct Mail 6.8% 5.2% 4.8%
No Let Up
Despite efforts at selective targeting, the total number of coupons continues to grow. During the first six months of 1994, 164 billion were distributed.
