Coupons

What impact do coupons have on your value chain?

Some facts about coupons:

  • Over 330 billion manufacturer paper coupons are issued in the US annually, with a total value of more than $300 billion.
  • Almost 4 billion individual coupons are redeemed by consumers annually.
  • A coupon has an average face value of 84 cents. 
  • Over 100,000 US retail companies accept coupons at their individual store locations. 
  • Coupons are legal tender in the US. 
  • The redemption process by which retailers are reimbursed by the manufacturer is outsourced to processing agents.

The current system is broken.

Companies with U.P.C. Company Prefixes greater than 6-digits can no longer be uniquely identified at coupon processing points by scanning the coupon. Until a new system is implemented, the cost and inaccuracy of redemption will continue to rise.

A solution is available.

Using business requirements received by the Coupon Re-Engineering Work Group, the Joint Industry Coupon Committee (JICC) and solution partners, assisted by GS1 US, have developed the U.S. Coupon Application Guideline using GS1 DataBar™ (RSS) Expanded Symbols.

This new coupon system can bring data integrity and efficiency to coupons:

  • This draft solution proposes a new coupon format (with a larger number of optional fields for specifying the more complex coupon offers in use today).
  • The new coupons will contain both the U.P.C. and GS1 DataBar (RSS) Expanded barcode, eventually moving to just the GS1 DataBar Expanded.

Note: Reduced Space Symbology (RSS) is now known as GS1 DataBar.

  • Since the GS1 Company Prefix is a globally recognized data structure, global users may also choose to adopt this new coupon system.

Learn more

Coupon Business Requirements

This is a consolidated list of business requirements submitted to the Coupon Re-Engineering Work Group that were considered in developing the new coupon system:

  • Enable the use of full GS1 Company Prefix to enable accurate redemption compatible with in-ad coupons
  • Unlimited value codes and complete validation
  • More flexible purchase requirements including the capability to prevent coupon doubling
  • Secure system with fraud controls with an audit trail indicating items purchased
  • Cost-effective and easy to implement migration path
  • No loss in POS productivity and must facilitate electronic coupon clearing