Tedious To Use Coupons
The coupon business is booming with several billions or even trillions of dollars worth of coupons dropped by all businesses annually in the U.S. alone. There is no mechanism to track all coupons dropped by all businesses in the country.
It is estimated that consumer packaged goods (CPG) manufacturers coupons account for about a $7.5 billion industry today, which includes coupon distribution, redemption and clearing. CPG Manufacturers alone drop $4,600 worth of coupons per household annually - that’s over 300 billion coupons in the US. Yet, only 3 billion coupons – about 1% - are redeemed. Why would a typical family turn down about $4,600 per year in savings?
Because, coupons are inconvenient, time consuming and tedious to use. Consumers have to cut the coupon, clip/sort them, save them, make a mess in the house, make a mess in the car, organize the coupons, and remember to carry paper coupons to the store. Forgetting the coupons at home is a common occurrence. Some consumers don’t use coupons due to pride, ego or because they don’t want to be seen as ‘coupon clippers’. Many consumers get frustrated standing behind someone who has a bunch of coupons that slows down the check out lane.
There is no mechanism for consumers to use paper coupons for online shopping. Even in self-check out lanes, a cashier has to intervene and help customers with paper coupons.
Most consumers love the savings, but hate to use coupons because of cumbersome and time consuming process. For most consumers, it’s not worth the time and efforts to use CPG manufacturers coupons primarily due to immaterial savings. Majority of the consumers don’t mind spending the time and efforts to use coupons on big ticket items where the savings are large.
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