Use of coupons: are all Hispanics the same?

Response Magazine recently reported that Independent Insert Coupons (FSI) emerged as a key component in the promotional programs of many manufacturers and retailers during 2009 with more than 272 million pieces discarded. But what was the coupon refund rate in 2009?

Well it seems a lot of discount coupons were used. The Experian Simmons National Consumer Survey showed that 7 out of 10 households used coupons in 2009. While most were looking to save money, others used coupons to try new products. One in two consumers said they used FSI discount coupons, placing this coupon category at the top followed by coupons received in the mail, found in packages, magazines, on the Internet, or delivered at or near stores.

For many years, coupon redemption among Hispanic consumers has been reported to be lower than that of the general population due to a number of factors including cultural barriers, unfamiliarity with the redemption process, different product preferences, channels distribution requirements, multiple purchase requirements, low coupon face value, and refusal to accept coupons from stores frequented by Hispanics, among others.

However, the last few years in a recessionary economy may have helped Hispanics move forward with the program. In 2009, Hispanics were not far behind the average for non-Hispanic households, with 6 out of 10 Hispanic households using coupons, with Puerto Ricans leading (67%), followed by Cubans (62%), other households of Hispanic descent (60%) and Mexican (57%). Nearly 4 in 10 Hispanic consumers used coupons inserted in newspapers (FSI) and 3 in 10 used coupons received in the mail.

Given the diversity and expected growth of the Hispanic population in the US from 15% in 2009 to 30% in 2050, there is a great opportunity for manufacturers and retailers to introduce new products to Hispanics with the help of coupons. The key is to develop research-based promotional programs, with a coupon component, that appeal to the diversity of the Hispanic market in the U.S. Sensitivity to cultural differences based on country of origin, product preferences , regional variations of the Spanish language and levels of acculturation, among other factors, can send coupons in the trash or have Hispanic consumers try new products.

Sources:

– Census Bureau – Population Projections by Sex, Race, and Hispanic Origin for the United States: 2010 to 2050
– SMRB – Summer 2009 Adults 6 months (February 9 – September 9)
– Jacqueline Renfrow, “FSI Coupons Hit Record Highs”, Response Magazine, January 20, 2010