The Brandcast

An article on couponing in today’s NY Times prompted me to once again think about the still suprisingly prolific use of FSIs. (I know - get a life - that first sentence even frightens me) I am constantly amazed at Brand Managers spending up to 30% of their annual budget against this tactic. I’m constantly amazed at VPs of Sales who say, they know the tactic doesn’t work - but “the trade wants it.” Don’t get me wrong FSIs have their place - in a very limited tactical sense but as a main tactic within an overall plan, they are quite simply - the easy route. Don’t believe me though, believe the consumer:

” In 2006, marketers distributed 286 billion coupons worth $331.8 billion, but consumers redeemed only 2.6 billion coupons worth just over $2.6 billion, CMS said.”

What this means is that coupon redemption has dropped to an all-time low of under 1% - and keeps dropping every year. Consumers, simply don’t care - and they are caring less with each passing year.

When I started in the business ( yes, Concentricite’s Hoover was President and the Charleston was ALL THE RAGE) the rate was closer to 1.8% - and it was obviously a waste then. Why do people keep throwing money against a tactic that while easy and cheap provides no results?

My only conclusion can be that they simply can’t think of anything better to do with their money or just bad habits. Which is silly - particularly in a time and place when targeting is 50x better, easier and cheaper than ever.