The industry trade publication CPG Matters has an interesting story today asking this question. Some highlights:
Some executives claim shorter expiration dates are a reaction to the TLC network’s “Extreme Couponing” television show, which encourages illicit and sometimes illegal coupon practices. But other officials armed with research say shorter expiration dates is a long-term trend and not driven by any redemption abuses.
The primary cause for shortening redemption periods is the need to minimize promotion liability, according to Tilley. Early in 2011, brands experienced high redemption and anticipated continued high redemption through the year. In addition to pulling back on distribution by 7.5% overall, brands worked to manage promotion budgets by tightening tactics, including reducing face values (down 1.3% to $1.57 per coupon) and shrinking redemption periods (down 4% to 2.4 months), he reports.
Bud Miller, executive director, Coupon Information Center, says, “Shorter expiration dates have been a long-term, gradual trend. From a security perspective, the use of shorter expiration dates reduces the chance that coupons will be used by organized fraud rings or sold in violation of the terms and conditions printed on the coupons.”
Rocketmom60 says
Absolutely the dates are shorter. I have noticed that for some months now. In the past, a coupon would frequently carry a 6 month expiration and on rare occasions, over a year. Now the dates are averaging 6 weeks or less.
EdwardLopez says
Oh really? Last time when I have had a coupons, the expiry date was for a 6 months. But I really don’t have that idea when this date get shorter. It is really surprising for me.
ChiTownSaver says
I get it, and seriously, they need to roll with the times. I graduated with a degree in PR and from that standpoint I see why they need to make them shorter for cost purposes.
It is probably not only that TV show people talk about but technology. They have to account for so much more now.
Example: Target online coupons. Being able to pair target coupons with mfg coupons is also another reason they see a spike in high redemption. How many more people to do you think used their activia coupon because it was free at target after coupon stack?
And how do a lot of people hear about these deals, and find out about when/where to use coupons…online blogs. They now have to account for how many there are, how big of an audience they have, and the mass amounts of people who use coupons because of being able to easily see what weekly deals are best. If you take away coupon blogs, how many less people would ‘extreme coupon’.
People make money off running a blog, it can be a part time/or full time job to some, and they are a big reason people use a specific coupon(s) during the same week. Not dogging on them (I greatly appreciate them), because I don’t have time to look up the new online coupons/deals all the time. They take time and energy to make a neat and easy to follow list for me and others, which in turn causes a spike in specific coupon use.
Maybe this show gets people interested in using coupons, and maybe some misuse coupons but you have to wonder if a good chunk sought out blogs, and used them ethically. That is actually a good thing for people running blogs, gives them more hits/readers which makes them more money.
The paper towel coupon from target that made single roll free. That was not featured on a tv show, but it was featured on a lot of blogs which most likely had an impact on people purchasing them which in turn made target take the coupon down, re-word the terms, and put it back up for a higher count than single roll.
Trial/travel size also. I am sure when they created a coupon 6 months prior to exp date they did not account for a trial/trial size being made for that product, which can cause for a high spike in people using the same coupon in a short time frame (Tide $2 coupon)
I also understand from the sale cycle standpoint. If a coupon lasts for 6 months then the chances for a sale to pair it with are that much greater. Who provides the sale cycle/weekly deals? Online blogs. Seriously, people have to stop blaming some television show and look at how times change over the years. The internet (including ebay) is a big thing, and couponing has caught up to it.
In summary, if anyone blames some television show for coupons being lower/shorter expiration date you really need a new perspective. There are so many other factors. This is just my opinion from a PR standpoint and what all I would be looking at to try and make my budget stretch.
Bethbe says
Thanks for this information.