Though coupons have been a feature of sales promotion
for years, it is only recently that coupons have been delivered
digitally, in email or on websites. While it is hard for a customer
to duplicate a coupon from a magazine or promotional leaflet it is
far easier to make many copies of a digital coupon.
The Institute of Sales Promotion (ISP) has said that the number
of online coupons being used by retailers has rocketed.
"In 2007, there was an unmistakable shift towards Internet
coupons by marketers with an increase of 650% in Internet Coupons
printed," it said in a set of guidelines it has published for
marketers on electronic coupons.
The ISP said that the while consumers welcomed digital coupons,
they presented dangers to retailers.
"The opportunity exists to make multiple copies of Internet
print-at-home coupons by photocopying, scanning, or reprinting the
original coupon," it said. "The primary impact of coupon copying is
the potential for unbudgeted redemption liability."
"Through email, online forums and online auction sites, all
coupons have the potential to reach a wider base than originally
planned," it said. "As a result, coupons other than those intended
by the marketer could be introduced into the marketplace."
Companies that use digital coupons should make sure that they
keep control of the offers and of how many people can take
advantage of them, the ISP said.
"Each coupon printed should be marked with a unique barcode and
an identifier that ties to the data in a marketer's database," said
the guidance. "These unique barcodes and identifiers should enable
each coupon to be tracked and linked to a specific consumer or
computer."
Some retailers have found that coupons can spread very quickly
via email. The Thresher chain of off-licences emailed a coupon to
some suppliers and business partners in November 2006 offering 40%
off wine and champagne.
The coupon did not specify who could benefit from it, though,
and it became an email sensation, being sent around the country to
people who were not barred by its terms and conditions from using
it.
The ISP said that marketers should make sure that technical and
legal measures are used to limit coupons to the intended audience
alone.
It said that the legal wording should make any restrictions,
such as a bar on transferring the coupon, clear. It also said that
technical measures should be used to prevent copying of the coupon
and even to prevent multiple printing.
Some of these measures could only be taken in relation to
coupons made using special software, which it recommends doing.
"A good coupon print application will allow marketers to
maintain control over the coupon printing process and print
quality," it said. "It will also prevent the coupon from being
stored as a file on a consumer's hard drive, making it extremely
difficult to manipulate in a graphics application."
The ISP said that such technology could even detect when a
consumer was sending the coupon to a 'file based' printer or fax
application, either of which could duplicate the coupon or
distribute it.
"[The guidelines] will help marketers and their agencies to
better understand the challenges of this new medium and navigate
quickly through the process to create successful internet coupon
programmes," said ISP chief executive Annie Swift.
