Suppliers


Coupon Fact Sheet

*Research has shown that: 52% of coupons redeemed motivated

BRAND SWITCHING.

It is important to note that a coupon will not just be responsible for moving one unit of your product but multiple. Most shoppers who switched brands continued to purchase the brands that they switched to after the first purchase.
Coupons also do well in
defending your brand against Brand Switching.

65% of coupons redeemed motivated –

  • NEW BUSINESS (“I was never going to buy the product but the coupon persuaded me to”).
  • PANTRY LOADING (“I decided to stock up”).

Research has shown that an important portion of all
Main Shoppers always use coupons.(2004-5 large national survey)
Coupons beat Trade Promotions (in all forms) when it comes to Return on Investment!(FSI Council of North America).

Coupons work best in tough times, just like what all shoppers are facing right now. (See Sunday Times July 3 2016, page 6 | news)

For more information on all aspects of coupons, phone Melissa or Mike at (011) 403 0688 or e-mail melissa@ccbsa.co.za or mike.aitken@ccbsa.co.za .

*Cart-Ad Instore Media’s research.


Coupon Campaigns

Successful coupon based campaigns have a number of factors in common. The most important ones are as follows:

  1. The face value of the coupon must give the shopper an attractive discount. The higher the discount, the better the response. Most successful promotional coupons have a face value of between 14% and 20% of the price of the product.
  2. Coupons must be targeted correctly. It is pointless distributing coupons to a target market that will never use or never could afford the product.
  3. The coupons should clearly show the product and the discount offered.

Certain products coupon better than others and certain methods of coupon distribution are more effective than others. When contemplating the use of coupons to promote a product, it is well worthwhile consulting Leni van Hattum at 011 403 0688 or leni@ccbsa.co.za to obtain an opinion on the campaign prior to its launch.

Methods of Distribution and Coupon Redemption

Coupon redemption varies depending on the method of distribution and the utility value of the product. The most effective coupon campaigns are those done at point of purchase. That is, where the shopper lifts the product off the supermarket shelf.
Point of purchase coupons are On Pack coupons, Neck Tag coupons, coupons distributed by in-store demonstrators and coupons dispensed from a coupon holder. Of these, On Pack coupons are the most effective. Their average redemption is 20% but the products like soap and aerosols show coupon redemptions even higher, from 30% to 40%. These percentages show how successful these types of coupons are as compared to couponing in the USA where the vast majority of redemptions are in the single digit figures.
Other methods of coupon distribution include booklets of coupons, knock-and-drop coupons, mailed coupons, coupons printed from the internet or emails, store printed coupons and coupons in magazines and newspapers. They are all successful in their own way.

Advertising Spin-Off

The success of a coupon-based campaign cannot only be judged by the percentage redemption. Many coupons pass through the hands of potential purchasers without being used. Each coupon is seen as an advertising impact, which is most valuable if the campaign is correctly targeted.

Coupon Clearing Bureau

Coupon Clearing Bureau, also know as CCB, is the clearing house for all consumer coupons redeemed in South Africa. The company was created in 1978 by both suppliers and retailers to perform all administration required and handle all transactions involved in the clearing house function.
The clearing house operation is audited by Stein Baltsoucos Inc. Quarterly internal audits are carried out to verify that the standards laid down are adhered to.
Coupon Clearing Bureau also provides a wide range of statistics on coupon redemption, tailor-made for both current and prospective clients.

Costs

Apart from the coupon design and printing costs, there are three costs involved in couponing:

  1. Coupon face value - this is the discount given on the product being promoted.
  2. Retailer handling fee - this is the amount charged by the retailer/wholesaler for redeeming the coupon. It covers administration costs and loss of interest on the money used to fund the promotion. A schedule of retailer handling fees is available.
  3. CCB processing fee - this is the amount charged by Coupon Clearing Bureau to cover the costs of administering the clearing house operation. The processing fee varies from retailer to retailer depending on the volumes of coupons received, the larger the claim, the lower the charge.

Accounting Modes of Operation

All suppliers receive their invoices, statements and supporting documentation by email on the 25th of each month. The suppliers pay over the retailer refunds plus retailer handling fees and CCB clearing house charges to CCB by EFT. The amounts owed to the claiming chain stores, other retailers, cash-and-carriers and wholesalers are then consolidated by claimant and then paid over to them by EFT. The claimants also receive all supporting documentation and reconciliations by email.

Terms of Business

Coupon Clearing Bureau invoices all suppliers by the 25th of each month. Payment is due on presentation, preferably through bank transfer.
It is most important for suppliers to understand that delaying payments causes negative sentiment amongst retailers which is transferred to shoppers, due to the shopkeeper’s reluctance to accept coupons. The harm done to couponing by delaying payments is far greater than the benefits of a marginally better cash-flow.
It is interesting to note that the U K clearing house requires all suppliers to deposit a float with them from which refunds are disbursed, prior to the inception of a promotion.

Coupon Destruction

Coupons are kept by Coupon Clearing Bureau for three months so that any queries can be investigated. Thereafter, they are destroyed in a secure environment.

For more information, please contact
Melissa at
melissa@ccbsa.co.za
Leni at
leni@ccbsa.co.za
Mike at
mike.aitken@ccbsa.co.za
Tel. 011 403 0688


Consumer Coupon and the Supplier

Coupon promotions are a relatively inexpensive means of promoting durable and non-durable consumer products. The results of campaigns are measurable and it is possible to carry out specific targeting of promotional activity using coupons.
Coupons are used to:

  1. Enhance sales.
  2. Build brand equity.
  3. Maintain market share by rewarding loyal customers.
  4. Increase repeat purchase and purchase frequency.
  5. Encourage multiple purchase (2 for 1 offers).
  6. Attract new users or brand switchers from competing products.
  7. Launch new products.
  8. Offset price increases.
As a whole, coupons help manufacturers and retailers to change a prospect to a customer, to a loyal user, and finally to an advocate.
Coupons are an integral part of life in the United States where 4.6 billion are redeemed annually. In Britain, 360 million coupons are redeemed annually while in Canada, each household uses 38 coupons per year.
Coupons usage is growing strongly in South Africa. The coupon industry has expanded every year but has a long way to go to reach it’s full potential. The demand is there, as we have found when visiting community gatherings. Shoppers all say that if coupons are distributed, they will be used.

Coupon Clearing Bureau (Pty) Ltd is the industry clearing house for consumer coupons in South Africa. Apart from it’s clearing house function, it also provides industry statistics and advice on campaigns (at no charge) to all who require it. For more comprehensive information on coupons and how they are relevant to your product, call Melissa Matthee at (011) 403-0688 or e-mail melissa@ccbsa.co.za.

(With acknowledgment to N C H Promotional Services in the U K)


Coupon Design Guide

  • The coupon should clearly show the product that is being promoted by the coupon. Ideally, there should be a picture of the product on the coupon.
  • The coupon should clearly show its face value, in Rands and Cents or just Cents.
  • There should be only ONE face value for each coupon.
  • The display of the face value of the coupon must occur only once. However, the face value may also be printed as part of the terms and conditions but it is necessary to ensure that this value is identical to the main face value as displayed on the coupon.
  • Coupons work best if the face value is over 14% of the usual selling price of the product. Coupons do not work if their face value is under 10%. Where the face value is over 20%, redemption can be unpredictably high.
  • Brightly coloured coupons always attract most attention and give better redemption.
  • Coupons that have sticky backings are difficult to process. Coupons can be produced that stick to the product but, when removed, are not particularly sticky. Speak to us at CCB if you need to find out more about this.
  • Do not have anything on the product that looks like a coupon but is not one. Typically, this would be a sticker or tag that alerts the shopper to the fact that a coupon is attached to or inside the product. Shoppers and retailers mistake and use them as coupons, after which they require a refund for them.
  • The coupon should have an expiry date but allow the shopper a generous amount of time to use the coupon. The expiry date must be very visible and we must be informed of it.
  • It is advisable to have a set of terms and conditions on each coupon – see next page.
  • It is necessary that each coupon has printed on it that the retailer must send it to Coupon Clearing Bureau (Pty) Ltd., Private Bag X2, Saxonwold, 2132, for a refund. Chains and other retailers will not accept the coupons if this statement is not present.
  • Ensure that, if a supplier requires each coupon campaign to have a unique code assigned to it, the code is printed on the coupon or is supplied to Coupon Clearing Bureau.
  • Coupon Clearing Bureau does not require coupons to have barcodes printed on them. The chain stores might require them at some point in time in the future.
Example Coupon :
Stacks Image 74
Example of Terms and Conditions for coupons:
Stacks Image 84

The Optimim Number of Physical Coupons to Distribute

(Paper coupons and laminated paper coupons)
Why you should increase the number of physical coupons that you distribute when running a coupon campaign.

The following graph shows the number of coupons distributed in a particular product category’s coupon campaign and the resultant percentage of those coupons redeemed by shoppers (These are actual figures from our historical database).

Stacks Image 119

You can see that if you only distribute a comparatively small number of coupons, like 15 360 in the graph, you will achieve quite a low redemption, like 2.18%.

However, if you distribute 50 000 coupons, you achieve 20.30% in this example and just under 50% redemption if you distribute 220 000 coupons.

A coupon also acts as an advertisement for your product. The mere act of a shopper seeing a coupon with your product on it creates an “advertising impact”. The more times a shopper sees an image of your product, the more familiar your brand will be to her/him.

Conclusion: Your coupon campaign will be more successful if you increase the number of coupons that you distribute.

Looking at the cost of mounting a coupon campaign, increasing the size of your print run adds a very small cost to the total project cost because of the economies of scale of larger print runs. Of course, the redemption costs will increase but the increase in the number of coupons distributed will result in measurably more of your products being sold and an increase in your revenue. Also your campaign will be much more successful with more of your products being sold. Finally, do not ever forget the increase in repeat purchases of your product that will take place as well.

Would a 100% redemption ever be achieved? Answer: Never! To illustrate this, the following is a selection of average redemption percentages for coupons for very popular brands from our historical database (the volumes of coupon distribution were substantial):

Product Category Average Redemption Distribution Method
Household Cleaners 27.97% On-Pack
Fabric Softener 25.47% Neck Tag
Air Fresheners 38.01% On-Pack
Nappies 11.58% In-Store Demonstrator
Polish 18.67% On-Pack
Hair Care 24.20% Store Printed
Deodorant 20.34% On-Pack
Soap 38.08% On-Pack
Potato Crisps 22.17% Store Printed

As the number of coupons distributed increases, the number of potential shoppers who would buy your product increases as well and the cost of reaching each one falls.

The final bonus is, that as the number of coupons redeemed in the industry increases, the unit processing charge as billed by CCB falls because of the economies of scale of processing large volumes of coupons.

For more information, please do not hesitate to contact Melissa at melissa@ccbsa.co.za or Mike at mike.aitken@ccbsa.co.za .

Physical Coupons Work!


Point of Purchase

Is Where the Action is

Point of Purchase Marketing has been proved to be a highly effective means of promoting sales because most purchase decisions are made at point of sale!
Point of Purchase Marketing appeals to ALL shoppers and not just those who have loyalty cards or smart phones!!! Every shopper walking past an on-pack coupon promotion is motivated to buy the brand or Pantry Load.

Reminder: Each coupon redeemed promoted the sale of at least one* unit of the product. The numbers are there to see! (* plus repeat purchases later on as well).

Stacks Image 254
Stacks Image 280
  • You can do the whole campaign in-house with your own company facilities and suppliers.
  • You can control the number of coupons distributed.
  • Coupons can be available in ALL retailers, both big and small, countrywide.
  • You can control exactly where your campaign is to run.
  • Campaigns can be initiated at very short notice.
  • “Coupons’ ROI beat trade promotions” – The FSIC (N America) & A C Nielsen (USA).

On-Pack coupons are the most successful of the Point of Purchase Coupons. Just see how well they do in the graph above.

Do not forget the importance of getting the shopper’s attention in that instant when he/she is about to lift the product off the supermarket shelf! Persuade them to choose your brand and not your competitors, by offering them a money-off coupon on your brand.

For more information on all aspects of coupons, contact Melissa at melissa@ccbsa.co.za
ON-PACK COUPONS WORK THE BEST!

© 2020 Coupon Clearing Bureau (Pty) Ltd Contact Us

Website by VIO Web

We use cookies to improve your browsing experience on our site. Click here to find out more