Working on Sunday

Eighty percent of all coupons are distributed via free-standing inserts in Sunday newspapers. Typically, FSI spending is the biggest percentage of a brand’s consumer promotion budget. Between media, redemption, and creative costs, marketers spend millions on FSIs every year, mostly on Sunday. Here are 10 ways to get more for that money.

Target where your FSI drops

A national drop is defined as 40 million or more circulation. (The total circulation for News America and Valassis is about 60 million.) Choose markets with a strong base of current customers and the most potential for redemptions. It’s better to increase frequency in good markets than to spend money in markets that provide little return. VSI Targeting Systems, Westport, CT, consults on targeting.

Drop the right coupon value

Value should be enough to attract consumers, but not blow your budget. Brand characteristics and retailer double-coupon policies can affect consumers’ perception of a coupon’s value. Values should be set at the market level, not by national averages, which are misleading. If you can save a nickel of redemption in multiple markets, that money can fund a wider circulation drop.

Let your objective dictate tactics

If awareness is critical, buy a full page, spread, or cover. Use a sweepstakes or testimonial. Consider a half-page or multiple coupons on a full page. No print or broadcast budget? Roper Starch found recall of FSI pages is often higher than that of traditional media.

Treat your coupon as a mini-ad

Once shoppers clip your coupon, the coupon must stand alone to convey brand message and spur purchase. Include a product photo and tagline; be clear on purchase requirements.

Preempt your competitors by two or three weeks

About two-thirds of FSI redemptions come within the first three weeks of a drop, according to Promotion Decisions, Cincinnati, OH. Each redeemed coupon represents a consumer who won’t be buying in the category in the near future. Drop first and you will reach more shoppers ready to buy.

Test variables

Creative, coupon values, market lists, coupons per page, multiple purchase requirements, and timing all affect redemption. Use A/B splits or other techniques to see what impact variables have on your redemption. The greater your redemption rate, the lower your cost per unit moved — and the better your chance of making your FSI spending pay back. Wallace Marx, Minneapolis, offers a pre-test that gives feedback on response for FSI versions only five weeks after a drop.

Consider incremental sales

How many people wouldn’t have bought your brand at all if they didn’t have that coupon? For packaged goods, an average of 50 to 55 percent of coupons redeemed represent incremental sales. Promotion Decisions can help you determine incrementality for your brand.

Don’t underestimate FSI effect

Make certain your cost and volumes are correct. When doing a marketing mix analysis, be aware that newspaper circulation does not always fall within market boundaries set by ACNielsen and Information Resources, Inc. Thus, FSI cost is overstated if volume generation is measured only within Nielsen and IRI scanner markets. That means the benefit of FSI spending is understated. VSI can help you identify which FSI circulation falls within scanner markets.

Judge creative on substantive measures

Review creative based on whether it meets brand objectives, stands out from the crowd, prompts purchase or enhances equity. Trust your agency.

Avoid retailer fines

Follow Uniform Code Council guidelines. Use standard formats; make certain bar coding is correct and complete; make purchase requirements clear. When coupons don’t follow guidelines, store checkers have to intervene, and retailers charge manufacturers to make up for that increased labor cost. Individual fines add up — and raise retailers’ ire during sales negotiations.

Sara Owens is president of Promo-Pros, Inc. in St. Louis. Reach her at [email protected].