The Coupon Crusaders

Marketing Communications

In 1971, 17½ billion coupons were distributed with an average face value of 10.2¢. By 1979, according to Nielsen Clearing House, 80 billion coupons were distributed, with an average face value of 15.6¢. Yet, during the decade, the rate of coupons redeemed from all coupons issued fell from 7½% to about 4%. Marketers increased their cents-off and refund promotions (7,000 refund offers were made in 1978), but the shopping public largely refused the bait despite the declining economic situation which in theory should have spurred consumers to use these money-saving measures. The "coupon quern"

Ernest W Kauffman, vice president of sales promotion and advertising for KW Woolworth, spoke of this, problem at a recent workshop of the Associate of National Advertisers. He placed much of the ''blame" on the growing number of working women: "Time is of the essence to the working woman. Saving time is more important than saving a few cents here and a few cents there "But, many consumers have found that coupon and refund promotions can save them much more than a mere "few cents." Susan Samtur is one of them. Kauffman called her a "marketers delight," but the media usually refer to her as the "coupon queen."

If marketers can't convince consumers take advantage of promotional opportunities, perhaps other consumers such as Samtur can. In her recently published Grosset & Dunlap book, Cashing In at the Checkout, Samtur writes. "The manufacturers are continuing to increase the volume of coupons issued each year, begging us to try their products by offering us substantial savings if we do. I consider it my public duty to take them up on their offers."

Samtur is a leading figure in the so-called "refunding underground" hundreds of thousands of consumers who have turned to systematic couponing and refunding methods. These methods, which promise food bill savings of up to 50-80%, are becoming a growing factor in the supermarketing world, Samtur has appeared on such tv shows as Good Morning America, Donahue and Dinah, and in such publications as Time, Good Housekeeping and Reader's Digest. On an NBC-tv newscast, shot on location in a supermarket, she ran up a bill of $130.18 on over 40 items. After she handed the checkout person her coupons, the hill was reduced to $7.07 a savings of some 95%.

In 1973, Samtur began publishing Refundle Bundle, a monthly newsletter. With a circulation of 53,000, it leads over 40 similar publications nationwide. A recent 24-page. 6x11½ -inch issue contained nearly 400 listings of current refund and premium offers, and some 300 classified "Switch W Swap" ads. One ad read, "Receive five forms including Stove Top for each Final Net, Clairol Conditioner, Gillette Trac II or 20 good forms for 50¢." This is typical language for refunders they have studied the food companies' marketing techniques and discovered a way, in Samtur's words, to "turn the tables on manufacturers and get them to pay you for shopping."

Marketing Communications reached Samtur not in a fancy office nor on a whirlwind tour, but at her Westchester, New York home, where she is awaiting the birth of her third child. She started refunding to save money on her family's shopping bills; fame came later. But she in quite willing to talk about her "Super-shopping" system. It relies heavily on a shopping technique called the triple play" which combines a store sale, cents-off coupon and refund offer to generate savings. She explains. I take the store's flyer, see what's on sale, usually find good sales on national brand items, try to match up what's on sale to the coupons, and then get a refund." Sometimes it takes weeks or months for the refund offer to be made, but Samtur says it always is. Then, she gets a refund form and mails in the proofs-of-purchase she has been saving.

National brand marketers, faced wilt heavy competition from generic and store brands in the coming years, have an ally in Samtur. To save money in the long run, she urges consumers to stay with national brands "Although the store brands may have cheaper price tags, they have the great disadvantage of being produced by companies who don't have the means to promote them," she writes. And she appears to know what she's talking about she gets approximately $1,500 annually in refund checks alone, in addition to a 50% savings at the checkout counter. And she also receives many free premium items.

The "supermarket shopper"

"We have a system. Samtur thinks she has a system." That's the opinion of Martin Sloane, a former marketing sales consultant and president of Dollar Rent-A-Car, who founded the American Coupon Club in 1977 and began publishing The National Supermarket Shopper, a monthly magazine Next month, Bantam Books will publish a Sloane paperback on couponing and refunding. But the biggest news to the marketing world is probably Sloane's new twice-weekly United Feature Syndicate column, "The Supermarket Shopper." Targeted for 'food day' and weekend newspaper editions, each column contains couponing and refunding tips, plus a list of current manufacturer offers. Since marketers distribute some 55% of their coupons through daily newspaper advertising, many papers hope to increase this lucrative business through reader interest in Sloane's column. According to Patricia McGinnis, UFS publicity associate, 'This is probably the fastest-selling column UFS has ever had 200 newspapers in only two weeks and more than 350 after six weeks."

Marketing Communications caught with Sloane at United Feature's headquarters in New York's Pan Am building. He was eager to communicate a message of "partnership" to marketers. "We believe we can serve as a positive influence on the effectiveness of their advertising." He's especially adamant about fighting coupon misredemption. "We don't want to see any avenue of savings dry," he says. And he believes couponing may fade as a promotional tool if marketers keep getting burned by misredeemers.

Sloane is for savings wherever they be found. This extends to generic brands, which he supports. "Supermarket have an obligation to offer shoppers the lowest possible priced products," he says. "Supermarkets that created generics as a promotional device and (now) want to get rid of them should give them equal treatment. Smart supermarkets are putting generics right out on the shelves." While Samtur says that her "triple play" works for any type of product, Sloane says his "Super smart shoppers" can "obtain discounts of 50% or more on most products." And, with items like soft drinks, "where national brands don't offer refunds, "he feels it's best to buy generics.

"Samtur's newsletter has no editorial content," says Sloane, whose 8x11-inch magazine is far different from the usual homemade-looking refunding newsletters. "We don't have any competitors," he boasts. And he's intent on publishing a true consumer magazine that will take national brand advertising "with the provision that every ad must include a coupon or refund offer."

Samtur uses her record of seven years' successful experience at a response to Sloane's attack on her system. Although she says she doesn't know much about his system, she did hear him "mention the triple play" on tv. She adds, "He probably took it from my newsletter."

Sloane's American Coupon Club has over 20,000 members, all of whom receive his magazine. Putting his marketing background to work, he has instituted incentives for members who send in reports of new refund form for publication. These members receive "gift point checks" which they use to receive gifts from a 90 page catalog. Premium supplier is Incentive Company of America. The ACC is also chartering local coupon clubs called "Shoppers' Circles."

The shopper lobby

The ACC has already shown apparent effectiveness as a lobbyist. "Grand Union was seeking to acquire Colonial Stores," explains Sloane. "We sent the FTC a letter stating that this would be anti-competitive and result in higher prices. We don't want huge national supermarket chains with the effect of stifling competition." Six weeks after the letter, the FTC filed a formal complaint about the proposed acquisition.

And Sloane wants changes in product dating rules. He feels there's something wrong when a consumer buys a product - and the refund form on its package has already expired. "Manufacturers that conceal dating with all types of codes are doing the consumer an injustice."

But Sloane is most vocal when talk turns to refunding. He feels that shoppers as well as manufacturers are being shortchanged by basic inconsistencies concerning refund forms (which are required for 75% of refund offers). For one thing, "most manufacturers are publicizing offers, but people can't find the forms." This situation, Sloane feels, is due to marketers' distribution of most refund forms through supermarket shelf p-o-p He explains that three factors interfere with this promotional strategy:

1. Some stores don't want the forms on shelves.

2. In supermarkets that allows forms, the salesman puts up 100 forms, which don't last long

3. Some people take more than their share (we advise our readers to take no more than two. and then come back the nest day for more)."

Thus, trading for forms through the mail or at club meetings becomes a sensible alternative for refunders who can't find the forms they need in their own stores. Refunders are urged to obey the "one refund per family" rule; they trade their extra forms for ones they don't al ---------- backing where consumers can write for forms. Fifty percent (of companies) are now doing so." And. if the manufacturer can't supply forms for some reason, it "creates more resentment than necessary by sending form letter refusals."' Sloane cites the Green Giant Company as having "one of the worst form letters - it advises customers to go back to shelves for refund forms that are never there!"

Do any companies handle refunding correctly? Both Sloane and Samtur can cite many, but they reserve their greatest praise for Procter & Gamble. Samtur devotes an entire section of her newsletter to P&G's refund offers. Sloane explains, "If every company could emulate P&G in the way they handle their coupon and refund customers, it would make everything a lot easier P&G will send customers refund forms. If you send a postcard, P&G will return the 10¢ (or 15¢ for a letter). If close to expiration, they'll send an extension slip. It's what I consider great customer relations."

Many marketers are catching on to the idea that the "refunding underground" can be an adjunct to their promotion programs. Sloane has received requests from companies that want to supply him with information directly. A couple of companies have asked to be included in Samtur's Refundle Bundle. And she remembers who her friends are. In a recent issue, she wrote. ". . . we have had such wonderful response from so many companies, i.e., Procter & Gamble, Nestle, Nabisco, Colgate, General Mills, General Foods to name a few that I'm sure it is these companies' products we'll all continue to buy." The premium prospects Samtur considers premiums a nice fringe benefit of her system But she acknowledges that other refunders make premium acquisitions their main goal Now, Samtur may become a premium herself. Her new Coupon Secret Kit (like -------------- a paperback book with refunding and couponing tips.

Anne Perlo, manager of special sales at Grosset & Dunlap, says, "They're ideal premiums. For banks, to help people save money. For consumer groups, to help people fight inflation. And for package goods marketers, because Samtur does stress buying brand name."

Cashing In at the Checkout has been "doing very well" at retail, says Perlo, although exact sales figures were not available at press time, But, with the book's appeal to grocery shoppers, sales have been largely in supermarkets rather than traditional book outlets The Coupon Secret Kit should also sell well in supermarkets, since its coupon organizer is meant to be earned around the supermarket as consumers pick out the coupons they need from various food categories.

Coupons and refunds have always been big business for manufacturers. But, with prices soaring and people looking to make ends meet, they have suddenly become big business at the receiving end as well. And that should make everyone consumers, marketers and sales promotion people very happy during the 1980s.