History of Coupons

Let’s be honest with ourselves — who among us doesn’t love coupons? Whether we’re shopping online or in person, a coupon is the second name of saving! Have you ever thought “Where did they come from?”

Coupons have been around for over 120 years and have evolved drastically. They’ve remained as essential to the American lifestyle to help the consumers score discounts from few dimes to several dollars. Coupons have a blood-stirring effect for obsessive consumers with their discounts and deals. Here is a brief history of coupons and their evolution in the future.

Who Invented the First Coupon?

Atlanta businessman Asa Candler, co-owner of the Coca-Cola Company created the first coupon, in 1887 to promote his new soft drink Coca-Cola. His innovative advertising campaign by giving away coupons that could then be redeemed for a complimentary glass of Coke created waves in the crowd. Little did he realize the phenomenal impact the concept would have on the marketing world, particularly demand generation marketing. His invention transformed Coca-Cola from an insignificant tonic into a market-dominating drink. While most of the hand-written coupons were circulated in the streets of Atlanta, some were also sent through the mail and put in magazines. Within two decades, the coupon was redeemed by 8.5 million consumers.

The Second Wave of Coupons

Despite Coca-Cola’s success with coupons, it wasn’t until 1909 that another company gave it a shot to create coupons. C.W. Post is believed to be the second American company to promote a product with coupons. He began offering coupons with a one-cent discount on grape nuts breakfast cereals and the customer response rate was highly successful. The companies began to understand the value of coupons, and that they weren’t brand-specific to Coca-Cola, businesses across the country wanted to get involved.

Couponing in the Great Depression Era

The Great Depression hit in the 1930 kicked coupon usage into high gear, as struggling Americans used coupons to cut their weekly grocery bills. Phrases such as “Use it up, wear it out, make it do or go without!” could be heard in the U.S. streets. Even after the U.S. regained its financial balance, consumers continued their frugal ways and coupon usage became routine.

By 1940, the movement grew by leaps and bounds as a means of drawing customers away from neighborhood stores.

Set Up of First Coupon Clearinghouse

In 1957, an actual coupon company, The Nielsen Coupon Clearing House, was established. The company allowed the industry to grow even more by removing some of the burdens on local businesses. With clearing houses serving as the middlemen between manufacturers and retailers, the process of redeeming coupons became quick, easy, and streamlined. It also encouraged more manufacturers to distribute coupons directly to the retailers selling their products.

Modern Coupon Era

By 1965, nearly half of the U.S. population was using coupons on a regular basis. Most of the coupons were distributed in newspapers and magazines, often taking up a large portion of these periodicals. And by 1975, the number grew to three-quarters of the population. Industries other than packaged goods began to adopt this popular marketing device in a variety of ways. Sunday newspapers started circulating printed inserts with coupons promoting everything from fast food to bank checks. Grocery stores began printing coupons on the back of the receipts, based on a consumer’s purchase. Electronic shelf coupons also appeared to boost point-of-sale purchases.

Emergence of E-Coupon

The invention of the Internet in the year 1990 led to downloadable coupons, online coupon codes, and virtual coupons. Consumers were attracted to e-coupons because they offer immediate value and savings. Cents-off coupon, free products are given upon redemption of a coupon, buy one, get one free, and many other types of offers can be conveyed through couponing.

Individual retailers offer coupons on their websites. Consumers can access these sites through the Internet, key in their zip code for a list of nearby participating stores, then print out a bar-coded coupon. Other electronic coupons can be found at the websites of online newspapers. Through computerization and the use of bar codes, coupon distribution rose to more than three billion annually in the United States.

Current State of Couponing

In the 21st century, a website such as Groupon.com offers coupon codes that can be typed in at checkout when shopping on E-commerce sites. In 2010, Target became the first national brand to put mobile coupons on customers’ cell phones. Shoppers could download coupons directly from coupon sites, receive text offers, and even scan barcodes from their phones.

As things stand now, coupons are more powerful and relevant than ever. They’ve evolved from clipping to clicking, and the deals have become more generous over the years. In 2012, mobile phone coupon use surpassed 5 billion and by 2014 the number supposedly doubled as coupon use has become popular with people of all socioeconomic groups. Coupon use is also prevalent across all generations, with nine of 10 respondents use coupons for their food, medications, household items, and health and beauty purchases.

As technology continues to evolve, so will coupons! The future is boundless and highly optimistic for deal seekers. And it’s all thanks to Asa Candler, that enterprising Atlanta businessman who decided to take a chance and offer people a free glass of Coke and save us money!