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Hard-To-Handle Coupons |
Foreword
This handout is designed to educate the industry about hard-to-handle coupons. Examples are not meant to single out any individual product or company.
The mission of the ACP Hard-To-Handle Coupon Committee is two-fold. One, to develop methods and procedures to educate all segments of the industry on the complexity and impact of hard-to-handle coupons, and second, to develop industry guidelines/standards, to improve efficiencies and lower costs.
Although some of the following examples may technically be coded according to the UCC guidelines, consumers, retailers/wholesalers, manufacturers and processors may have difficulty handling them. We feel these issues should be brought to light so all companies can avoid these problems in the future.
Most hard-to-handle coupons fall into five distinct categories:
* Truncation of Bar Codes / Poor Print Quality
* Adhesives / Sticky Coupons
* Coding Errors
* Size of Coupons
* Complicated / Confusing Coupons
This handout addresses the above five situations, with examples of each.
It states the problems involved for consumers, retailers/wholesalers, processors and manufacturers, the reason they are hard-to-handle, and the recommended solutions.
Problem: Truncation of Coupon Bar Code/Print Quality
Parties Affected: Consumers, Retailers/Wholesalers, Processors and Manufacturers.
Consumer: A consumer is delayed at the register if a coupon has a truncated bar code or poor print quality. This results in time wasted and ultimately diminishes the shopping experience of the consumer.
Retailer/Wholesaler: Cashiers must scan the coupon multiple times for the POS system to read the scan bar. This reduces the checker's productivity and ties up the consumer. Ultimately it will add to increased labor costs and a reduction in store productivity.
Processor: If the scan bar is truncated to a point where the processor's scanner cannot read the coupon, then the coupon goes through a manual form of processing, which will potentially slow down productivity, and affect the integrity of the data.
Manufacturer: The manufacturer could possibly have additional processing costs. The information received from processors may not be as accurate as electronic methods. It may also diminish the relationships between all parties involved.
Solution:
The coupon bar code should be printed in black against a white background. Manufacturers should follow the coupon bar code guidelines set forth by the UCC stating:
"Nominal size, including margins, of the symbol is 1.020 inches in height by 1.469 inches in width. The symbol may be reduced to 80 percent of nominal or enlarged to 200 percent of nominal." *
*U.P.C. Coupon Code Guidelines Manual, September 1994.
Example A: Truncated and colored coupon bar code
Problem: Adhesive/Sticky Coupons
Parties Affected: Consumers, Retailers/Wholesalers, Processors and Manufacturers.
Consumer: The consumer has problems with the sticky back coupon because it will stick to other coupons. Consumers have difficulty removing on-pack coupons. These problems will diminish the shopping experience for the consumer and could impact the future usage of these types of coupons.
Retailer/Wholesaler: If the adhesive does not peel off the coupon it will naturally stick to everything, which creates a problem for the store personnel. Because the bar code is on the back of the coupon, scanning can be compromised if the coupon sticks to the scanner or if the scan bar becomes unreadable due to sticky residue or tears. The coupon has a greater risk of being lost or misplaced by store personnel. The retailer potentially loses money if coupons cannot be submitted to the processor or if the submitted coupons result in adjustments.
Processor: It is impossible for a processor to scan coupons that are stuck together. The processor must either pull coupons apart, return the coupons to the retailer or resort to weighing the pile of coupons and estimating the redemption. All result in manual intervention, which increases costs and may impact the accuracy of the information.
Manufacturer: The manufacturer will feel the effects through possible deductions or charge backs because of the processor counting too many or not enough of the actual coupons redeemed. Complaints may be received from consumers, which jeopardizes repeat purchases.
Solution:
The manufacturer can use a coupon with perforated edges that can be torn away from the pack, or the manufacturer can use vendors that produce adhesives that will not be sticky after the coupon has been peeled from the package.
Example B: Stuck together coupons
Problem: Coding Errors
Includes but are not limited to:
* Coupons NOT starting with number system characters 5 or 99
* Incorrect check digit
* Bar code does not match numbers and face value
* Incorrect manufacturer number
* Incorrect family code
* Incorrect offer code
* Incorrect value code
* Incorrect EAN 128 extended code
Parties Affected: Consumers, Retailers/Wholesalers, Processors and Manufacturers.
Consumer: Incorrect information that makes the consumer wait or takes off an incorrect value results in a dissatisfied customer. It can also create strained relations between the consumer and retailer.
Retailer/Wholesaler: If the retailer scans a coupon with a coding error, there are threepossible scenarios:
1)Cashier intervention - This could be caused by a number system character other than 5 or 99, a wrong manufacturer or family code number, or scan bars that do not match the human-readable numbers.
2) Incorrect coupon value - The value code is incorrect and does not reflect the stated value of the coupon.
3) Coupon actually adds amount to order - This is a number system character error. If a coupon bar code does not start with a system 5 or 99, then the POS system looks at it as product, not a coupon. If the UPC on the coupon matches a UPC in the store, it will add that product and price to the order rather that subtracting it from the order. This may also create mistrust between the retailer and consumer.
In all of the above cases, the retailer loses productivity, and in many cases, creates strained relations with the customer. The consumer identifies the problem as that of the retailer.
Example C: Coupon bar code with the wrong coupon number system character
In all of the above cases, the retailer loses productivity, and in many cases, creates strained relations with the customer. The consumer identifies the problem as that of the retailer.
In the future, when the retailer has the ability to scan the extended code, errors that occur in the EAN 128 code can result in inaccurate validation by the retailer, or no validation at all.
Processor: In many cases special programming or manual intervention may be necessary, which results in additional costs. These problems may cause adjustments, chargebacks and inaccurate information.
Manufacturer: The manufacturer could possibly experience additional fines or deductions from the retailer and additional charges from the processor. Manual intervention as opposed to electronic scanning could result in inaccurate information.
Solution:
Production quality control and education of all industry members are the keys to reducing the amount of coding error coupons. Industry members should utilize the U.P.C. Coupon Code Guidelines Manual published by the UCC as well as the JICC's new publication, Coupons: A Complete Guide. Also, attend one of the many seminars offered by the following groups:
Association of Coupon Professionals (ACP)
Uniform Code Council (UCC)
Food Marketing Institute (FMI)
Joint Industry Coupon Committee (JICC).
Example D: Coupon bar code with the wrong value code
Problem: Size of Coupons
Parties Affected: Consumers, Retailers/Wholesalers, Processors and Manufacturers.
Consumer: A consumer can easily lose or misplace a small sized coupon. The item may not be purchased the next time due to the problems that occurred in the past.
Retailer/Wholesaler: If the coupon is a small size, the store personnel may lose the coupon after the redemption has occurred. The store can also lose or misplace small coupons when sending them to the processor, which results in the potential loss of money.
Processor: If the processor cannot scan coupons due to the size, they must be processed manually. This creates additional costs and may impact accuracy. Invoicing variances may result if the processor loses coupons.
Manufacturer: The manufacturer may receive less accurate data due to the manual processing and could also receive charges from the processors due to the additional costs incurred. Relations with retailers may be strained.
Solution:
The UCC guidelines state "Coupons should be distributed in standard sizes and shapes. The following sizes are recommended:
Length - 6 inches, with tolerance to 3 inches.
Width - 2-1/2 inches , with tolerance to 2-1/16 inches."
"Dollar Bill Size"
For on-packs, a larger coupon can be folded to fit in a smaller area as long as the UPC of the coupon is not exposed.
Example E: Small coupons
Problem: Confusing and Complicated Coupons
Parties Affected: Consumers, Retailers/Wholesalers, Processors and Manufacturers.
Consumer: Consumers may misinterpret the wording and the product shot on the coupon, and may feel deliberately misled when they do not get the offer they are expecting. Also, they will be delayed at the point of sale, possibly diminishing their shopping experience.
Retailer/Wholesaler: The store personnel may have to take the time to determine if the consumer has met the purchase requirements to qualify for the offer, resulting in delays at the register. This impacts productivity, profitability and data integrity, as well as creating a negative perception of the retailer in the mind of the consumer.
Processor: The processor may have to handle the coupon manually, which may slow down productivity, increase processing costs and impact the integrity of the data.
Manufacturer: The processor may misinterpret the coupon resulting in incorrect charges to the manufacturer. Also, the charges received from the processor may be charged against the wrong brands (potentially even charged to wrong company.) Another charge may come from the retailer in the form of fines. This can create ill will between the manufacturer and retailer.
Solution:
Manufacturers should avoid running offers that are confusing or complicated. They should consult with their agent before the offer goes out to the consumer, since the agent might have had the same problem with another manufacturer and could suggest a better solution.
Example F: Complicated coupon offer
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