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Hard-To-Handle Coupons
Forward
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.
Example A: Truncated and colored coupon bar code
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." *
*UPC. Coupon Code Guidelines Manual, September 1994.
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.
Example B: Stuck together coupons
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.
Problem:
Coding Errors
Includes but are not limited to:
* Coupons NOT starting with number system characters 5 or 99;
* Incorrect manufacturer number ;
* Incorrect family code;
* Incorrect value code;
* Incorrect check digit;
* Bar code does not match numbers and face value;
* Incorrect offer 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 three
possible scenarios:
- 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.
- Incorrect coupon value - The value code is incorrect and does not reflect the
stated value of the coupon.
- 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.
Example D: Coupon bar code with the wrong value code
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).
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.
Example E: Small coupons
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.
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.
Example F: Complicated coupon offer
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.
Where To Go For Help
Coupon Information, General
Grocery Manufacturers of America
1010 Wisconsin Ave., NW #900
Washington, DC 20007
(202) 337-9400
Food Marketing Institute
800 Connecticut Ave., NW #500
Washington, DC 20006
(202) 452-8444
Coupon Coding, Scanning, UCC/EAN-128 Code
Uniform Code Council, Inc. (UCC)
8163 Old Yankee Road, Suite J
Dayton, OH 45458
(937) 435-3870
Or GMA and FMI
EDI to Support Scanning
(See UCC above.)
Family Codes
Product Manufacturer
Information Resources Inc.
150 North Clinton Street
Chicago, IL 60661
(312) 726-1221
Fraud, Suspected Illegal Coupon Handling
Coupon Information Corporation
1020 North Fairfax Street 4th Floor
Alexandria, VA 22314
(703) 684-5307
Internet Couponing
JICC Internet Coupon Task Force
Industry Relations Group, GMA, (202) 337-9400
Industry Relations Department, FMI, (202) 458-8444
UCC/EAN-128 Extended Code, U.P.C Coupon Code, EAN-99
(See UCC above.)
Association of Coupon Professionals
1043 Charlene Lane
Schaumburg, IL 60193
(847) 922-3782
www.couponpros.org
© Copyright 1999
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