Saturday, August 29, 2009

Savvy shoppers propel comeback of coupons

PORTLAND, Ore. — Electronic coupons, arriving by cell phone, Twitter, e-mail and Facebook, are helping generate an old standby's comeback and bringing in new, younger customers.
Many shoppers, especially young consumers like 30-year-old April Englebert, used to reject coupons printed in newspapers and direct-mail booklets as passe or cumbersome.

But Englebert, an accounting clerk in Portland, Ore., was so thrilled when she cut her monthly grocery bill from $500 to $300, mainly with electronic coupons, that she recruited friends and co-workers to try them.

"It's awesome," Englebert said. "There is a lot of free stuff to be had."

Coupon use had been declining since 1992 as consumers found less need for or some embarrassment in using them. But as the economy worsened, frugal became cool again and their popularity grew.

Use of electronic discounts and coupons more than doubled in the first half of 2009 compared with the same period last year as overall coupon use rose 23 percent, according to coupon-processing company Inmar Inc. They now account for more than 3 percent of all coupons used, up from roughly 2 percent in 2008.

While they still represent a small part of the total coupons used, they have strong potential — growing quickly and providing a new way for shoppers to stretch increasingly tight budgets.

"It does take some significant outside forces for people to wake up and pay attention to the savings opportunities available to them," said Matthew Tilley, director of marketing for Inmar.

Online advertising circulars, coupons sent to a consumer's cell phone based on entering a text code and other e-coupon strategies are gaining ground.

"There's no question this will continue to grow; coupon use continues to be important, especially in the current economy," said Bob Faricy, vice president of market development at The Tennessean .

The newspaper's Web site features printable coupons online at www.NashvilleShopping.com, and allows online readers to flip electronically through big-box advertising circulars at www.Tennessean.com as well. This "Circular Central" feature launched in May at the newspaper.

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