The NY Times article head said "Given Fewer Coupons, Shoppers Snub Macy's." And there is a tale to tell.

Printed coupons are a huge business. In 2006, retail-based companies issued almost 280 billion printed coupons, up 13 percent since 2002, according to NCH Marketing Services in Deerfield, IL. But Macy's tried to cut coupon use as they completed their takeover of 410 department stores around the country and renamed them.

Macy's usually sends coupons by mail to charge card users, but issued one third fewer coupons in spring 2007 than in the previous spring. Marshall Field's and Filene's had relied on 15- and 20-percent-off coupons. But Macy's thought that high fashion brands would draw customers. Macy's forgot a basic law of retail: shoppers love a bargain. Other companies also learned this the hard way. Coca-Cola issued its first coupon in 1894 but lost market share when they thought that coupons were outdated. Coupon cuts by the Ruby Tuesday chain in 2004 adversely affected sales. Procter & Gamble's effort in 1996 actually led to boycotts.

In 2005, Federated Department Stores, acquired May Department Stores, which owned 11 storied chains around the country. Macy's changed all the store names, a move that upset loyal customers. The new chain, with 800 stores and $27 billion in sales, would be big enough to secure exclusive product lines like Martha Stewart and then draw customers with newspaper ads.

The coupon debacle contributed to four consecutive months of falling store sales this spring and Macy's stock dropped 40 percent. Sales clerks explained to customers that they would save more using their Macy's charge cards which are programmed for discounts. But, shoppers wanted their coupons back. Loyalty is only as deep as one's wallet.

According to Dick Gorelick's newsletter: so-called "loyalty programs" are, in truth, frequency programs.  They reward volume, not loyalty.

The most frequent shoppers favor discounts (53%) and coupons (35%) in loyalty programs. Only 13% attached importance to personalized communications ? it is truly a case of show me the money (off). Psychologists refer to the current buying environment as "The Psychology of Next."  Consumers are bombarded with thousands of advertising messages every day.  They are easily bored, and react to variety. Repetition in content or medium is a turn-off to many people; in part, that may explain the success of multi-channel marketing.

Studies by Focalyst also found that, to the extent that loyalty is a valid concept, it is eroded by companies that "overwhelm" customers with promotional messages. Attention spans are short ? and becoming shorter.  Customers want to know, "What's new?"  In direct mail, frequency used to mean more frequent mailings of the same material.  The evidence is that marketers, whether consumer or business-to-business, are best served by the use of different media and different formats when communicating a constant differentiated message.  This information has relevance to both graphic arts companies and their customers because finding the right blend of personalization and discount and media are important to all of us.

Coupons are also going high-tech

Consumers who use Coupons Inc.'s Website to download offers can now view video coupons. Marketers are able to allow their customers to view a 15- or 30-second video advertisement on Coupons' Digital FSI distribution platform and receive a cents-off coupon for the product once it's completed. A network of hundreds of consumer Websites uses its services, as well as consumer packaged goods and pharmaceutical manufacturers. Clients and licensees include Johnson & Johnson, General Mills, Kimberly-Clark, Masterfoods, Pfizer, Wyeth, Valassis, and News America Marketing.

This is the merging of rich media with couponing and it is a valid trend because of the increase in households online; the decrease in Sunday newspaper circulation where traditional paper-based coupons appear; and the fact that online couponing allows a client to track whether a coupon was downloaded and redeemed.

I still think the paper coupon delivered to the home via mail, or newspaper, or directly is an important element in marketing. I just got a Bed, Bath & Beyond postcard for a 20% discount and it did not go directly to trash.

The Macy's case is the first time that the elimination of print from the marketing mix has been documented. We could sure use more of these in making the case that print is still a vibrant, viable part of American marketing.