Coupon Trends

A new annual report has been released about coupon distribution and redemption in the U.S. for 2006. CMS, a provider of logistics services for promotions, reports that more than 286 billion coupons were distributed last year, representing a value of more than $331 billion to consumers. Of these, just over 2.6 billion coupons were redeemed by 142 million consumers.

The report states further that 89% of coupons are distributed in FSI's in Sunday newspapers, with 92.5% of overall coupons distributed directly to the home (in newspapers, magazines, direct mail, etc.). Less than 5% were distributed in-store.

Big numbers that the coupon industry trackers uses to market themselves. Researchers, by nature, are skeptics. So, the research analyst in me can't help but try to look at the figures objectively... or at least from another angle or two.

• The figures reported above represent a 12% decline in the number of coupons distributed and a corresponding 13% decline in the number of coupons redeemed.
• There are 226 million adults in the U.S. and 142 million redeemed coupons in the past year -- or about 63%.
• The coupons measured and tracked are consumer-packaged-goods products... branded grocery products, cleaning supplies, etc., that virtually everyone uses. If 142 million consumers redeemed 2.6 billion coupons, it means that each consumer redeemed only 18.3 coupons last year -- or an average of 1.5 coupons/month.
• 2.6 billion coupons redeemed out of 286 billion distributed means that less than 1% are redeemed.
• $331 billion value of 286 billion coupons represent an average coupon value of $1.16 for products that typically cost less than $5 -- or more than 23% of the value of the item.
  The average expiration period for coupons was 2.9 months.

The article states that several trends impact consumer perception, and therefore redemption practices. The consumer price index (CPI) is rising faster than the average coupon face value. Average expiration periods are falling. Average face value is declining. The number of multi-purchase requirements is increasing and now represents nearly 30% of all coupons distributed.

I believe that coupons serve as a valuable marketing tool, if used properly with realistic expectations. What do you think? Do coupons have value in today's marketplace? Do you use coupons in your business -- why? How do you determine the right face value, design, distribution, expiration date? How do coupons integrate into your overall marketing plan?

Registered users on CouponInfoNow.com can read the full report here: http://www.couponinfonow.com/Couponing/2007trendsoverview.cfm

From Rants to Raves

Lately, a number of the newsletters I regularly get have been focusing on handling complaints and dissatisfied customers. Is it really possible to change a dissatisfied customer's mind and increase their loyalty to your business, product or service?

It depends, say the experts.

It's in our nature to talk to our loyal customers and treat them as special. Because, after all, they are special and we already know how to please them.

It's more difficult to listen to dissatisfied customers. Beyond just not being happy, they are not happy with us. After all, in a small business, we generally think of ourselves as the company. It's personal.

There are a number of suggestions for transforming rants to raves about your company:

1. Listen. Without being defensive and explaining why not.
2. Seek them out. Don't let angry customers "just leave." Ask people what you could do better, before they leave. Follow up on service that you think might have been less than stellar.
3. Resolve the situation to their satisfaction, not yours. The key is to ask them what you can do to correct the situation. You might be surprised; they may not want much. If you're prepared to do more, then by all means do more.
4. Don't dwell on it. Do what you can and then move on. Constantly improve; but realize that you won't win every single customer back. Celebrate the ones you do; learn from the ones you don't.

I used to fly more than a quarter-million miles a year for business, with half of those miles on one airline. I decided to use miles to fly my mom and sister to Vegas to visit relatives and go to the Grand Canyon, as they had never been. When checking in at the ticket counter, the agent said my party would likely be upgraded to first class.

Imagine my dismay when our seat assignments were changed four times before entering the plane and then again after boarding. Ultimately, two of us were in center seats in the back row, and the third member of my party (also a platinum flyer with this airline) was relegated to a center seat between three-year-old twins.

Needless to say I complained. To the gate agent. To the flight attendants. Ultimately, to the platinum service desk. What happened? Nothing. A form-letter apology response "explaining" that sometimes flights are overbooked.

On another trip, and needless to say another airline, there was blizzard and my flight was grounded in Chicago. For seven hours. I was not an elite flyer on this airline. The airline gave $5 food vouchers and bottled water to every stranded passenger. Granted, the vouchers paid about half the cost of a sandwich, but which airline do you think gets my business now?

How do you and your staff handle complaints? Are there set policies and procedures in place, or do you handle each dissatisfied customer differently? Would you share some of your tips and techniques?

Interviews: Can They Predict Performance and Behavior?

At some point, virtually every small business owner needs to hire someone... a vendor, an employee, an accountant... when I think back on my 25-year career (35 years if you count jobs before graduating from college), I've been interviewed a lot more times than I've interviewed someone. From what I've read, this is pretty typical.

It's not surprising, then, that we all feel a little bit of anxiety in the interview process. Are we asking the questions we need to ask? How do we really know if the person will perform well... or fit into our company culture... or possesses the basic skills to do the job?

I have some "favorite," if not off-the-wall, questions that I ask in interviews. I mean those beyond the standards that most interviewees prepare responses for in advance. Questions that I think help me to understand the candidate's motivations on a deeper level. Some of these include:

• If you could go anywhere in the world on vacation, for any length of time, and money were not an object, where and how long would you go? What would you be doing?
• What are you passionate about? When are you the most content? What makes you angry?
• Let's say I offer you this job and the next day you find out you have three months to live. Will you still want the job? If so, why? If not, what would you rather be doing?
• How do you define customer service? Give me an example of a time when you received/provided exceptional/unsatisfactory service.

Can interviews really help you know what kind of employee the person will be? What are some of the techniques, questions and processes that you use to minimize the risk of hiring someone who is not a good fit?

The Value of Industry Conferences

I just returned from a national conference for the newspaper industry. It was a mind-expanding experience to see and hear what my "colleagues" are doing across the country. The sessions were insightful and ran the gamut from big "Rah, Rah" sessions to discussion about the details of putting out a newspaper every day... or, in our case at Southwest, every week.

It's not the kind of thing I would enjoy doing every day. Which is probably why I don't work for an industry association like the Newspaper Association of America (NAA) who put on the conference. I much more enjoy making an impact on a smaller scale.

My job experience has run the gamut from my first "real" job working for an interior designer to my current job in marketing and research for Southwest Newspapers. I've done research work for consumer products companies like P&G, RJ Reynolds, Dracket, American Studios (the photographers for Wal-Mart stores), and a multitude of other large corporations. I've done marketing research for media companies -- newspapers ranging in size from The New York Times to the Jordan Independent, television and radio stations -- and for businesses that advertise with them ranging from international retailers to the single-store mom-and-pop.

I've worked at companies with retail store fronts - my extended-family's restaurant in Ohio, a veterinary office, a fabric/crafts store. I've run a machine at a plastics manufacturer and pumped gas at my father's service station. And, I've worked at corporate headquarters designing and influencing the market-data programs and procedures for many subsidiaries.

But, enough about me. That's not what this forum is about.

When I stop to think about where my real passion is... what really makes me tick... what others think I'm good at... it almost always has to do with "helping the little guy." How to help small business succeed. Where seemingly the smallest detail can make the biggest impact.

That's what this forum is about. It's, simply stated, meant to be a forum for bringing questions and answers, or at least advice, together. For those people who, quite frankly, can't attend national conferences for their industry. Not because they don't want to, but because doing so would have a direct impact on the bottom line far exceeding the cost of the conference... because their business would be closed while they're away.

I feel compelled to say that my conference attendance was paid for not by me, or by Southwest, but by the national association. Otherwise, most likely, I wouldn't have been able to attend, as we at Southwest have to weigh our decisions about such expenditures (in both time and money) very carefully as well.

Anyways... how do you feel about attendance at conferences for your industry type? Do you go? Are they beneficial and valuable? Are they out of reach for you and your company? What kinds of session topics would entice you to attend, if any?

This forum is for you. What topics would you like to see discussed here?