Ed's Notes: Do South Africans use coupons?

I'd turn on the coffee maker and sneak downstairs in my jarmies to collect the newspaper - which was fat and juicy, with inserts galore. The "news" part of the newspaper usually went unread. The scissors came out and the hunt for fabulous goods was on.

Coupons for coffee shops, Levi jeans, household cleaning items, Coca Cola specials and onions rings with your next oversized tub of babyback ribs and French fries piled up around me. Happily - and unlike here where the ad appears on a Friday and you hit the large department store on a Saturday and they're "sold out" - American stores have a "rain check". If the item on your coupon isn't available, you get a "rain check" and can come back at any time for the item at the reduced price. No, really.

The closest I have come to "coupon shopping" in South Africa is when the Soap Powder Lady hands me a "20% off" deal in the cleaning aisle at my local store. Do South Africans not use coupons? Are we afraid of them? Or has our long history of "sorry, we sold out three minutes after that ad was printed" just put us all off altogether?

Take a look at how well online coupons are doing in the USA. According to the latest Online Shopper Intelligence survey, one-third of online shoppers surveyed said they generally use coupon sites while shopping online. 35 million - THIRTY FIVE MILLION - consumers visited coupon sites in April 2010, up 5% from the previous year. Mediapost.com says that besides the consumer benefit, coupons have a significant impact on retailers' bottom lines.

More than half of the consumers who used a coupon code during their last online purchase said that if they had not received the discount, they would not have bought the item(s), suggesting that coupons can be a highly effective sales driver.

In response to the question "If you did not have a coupon, would you have made a purchase..." respondents answered:

• No... 57%     

• Yes...43%

Coupons have a high ROI, concludes the report, as the small discount consumers receive encourages them to spend money.  When asked how much they spent on their most recent online purchase, consumers who used a coupon spend almost twice as much as consumers who did not use a coupon.

How much did you spend? (average spend on most recent online purchase)

• With coupon... $216

• No coupon... $122

(Source: Compete, June 2010)

The study also says coupons are an effective way for retailers to build good will with their consumers and increase customer satisfaction. When asked about their overall shopping experience, satisfaction was higher for consumers who used a coupon than for those who did not. Those who used a coupon said they are more likely to buy from the retailer again when compared to those who did not use a coupon.

So . . . an opportunity for some branding on the coupon; another to get someone into a store; another to get them to try your product and perhaps become a loyal buyer. Why aren't we taking full advantage? Anyone?

Today's newsletter asks you to tell us who should replace Mansfield; takes a look at a case study by PenQuin International; and brings you info on the Vuvuzela app for your iPhone, for when we all start missing it . . . Enjoy!

Dianne