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Internet Couponing Redemption Rates


The average redemption rate for Internet printed coupons stands above most other coupon distribution methods at 11.36%. This is an increase from 2006, and can be attributed to a number of things:




Average Face values Increase

In 2006, both the average face values distributed and redeemed for Internet coupons increased significantly. This increase was driven by above-average face values in the health care and the household product categories. The average face value distributed climbed $0.65 (+74.7%) to $1.52, while the average face value redeemed increased $1.03 (+112.0%) to $1.95. Average face values for Internet coupons are well above overall industry averages.

Average Face Value Distributed and Redeemed

In general, as face values for Internet coupons increase, so do average redemption rates. Consumesr appear to be motivated by increase savings.

Redemption Rate Trends by Face Value Range

Face Value Range 2005 2006
Free N/A 6.80%
$0.01 - $0.24 N/A N/A
$0.25 - $0.34 N/A 7.42%
$0.35 - $0.49 7.87% 11.81%
$0.50 - $0.74 8.76% 8.62%
$0.75 - $1.00 12.34% 12.32%
$1.01+ 20.35% 13.73%



Average Purchase Requirements Increases

In 2006, 24% of all Internet coupons distributed were multiple-purchase coupons, requiring consumers to purchase two or more products to receive the proffered discount. In comparison, 28% of all coupons distributed required consumers to purchase multiple products.

Both the average purchase requirements distributed and redeemed have increased over the pasts two years. In 2006, the average purchase requirement distributed increased 0.03 units (+2.3%), while the average purchase requirement redeemed increased 0.04 units (+3.1%). An increase in the average purchase requirement for the frozen product category was the primary driver behind the overall increase.


Redemption rates for the single-purchase coupons were slightly higher than those for multiple purchase coupons.

Average Purchase Requirement Distributed and Redeemed (in units)

Redemption Rate Trends by Purchase Requirement

Purchase Requirement 2005 2006
Single 11.34% 11.56%
Multiple 9.31% 10.71%



Coupon Expiry Period Decrease

Despite decreases in both the average expiration periods distributed and redeemed for Internet coupons, they remain well above overall industry averages. The average expiration period distributed was down 5.1 months (-47.7%) to 5.6 months, while the average expiration period redeemed was down 4.6 months (-47.9%) to 5.0 months. Substantial decreases in all product categories except beverages, suppressed overall statistics.

Average Expiration Periods Distributed and Redeemed (in months)



Redemption Rate Trends by Expiration Period Range

Expiration Period Range 2005 2006
0 - 2 months 14.64% 24.07%
3 - 5 months 13.01% 16.33%
6 - 8 months 21.69% 11.70%
9 - 11 months 20.26% 12.38%
12+ months 8.88% 8.90%



Coupon Category Redemption Rates

In 2006, average Internet coupon redemption rates ranged from 7.22% in the personal care category to 36.54% in the beverages category. Redemption rates in the beverages and household categories increased between 2005 and 2006.

Average redemption rates for Internet coupons in all product categories are well above overall industry averages.

Redemption Rate Trends by Product Cateogory

Product Category 2005 2006
Beverages 12.06% 36.54%
Dry Grocery 11.72% 11.37%
Frozen 12.57% 8.84%
Health Care 19.38% 11.08%
Household 5.32% 9.09%
Personal Care 6.13% 7.22%
Refrigerated 18.23% 14.43%

Excerpted with permission from “Advantage Update: Internet Coupons” © 2007 CMS, Inc.

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