Settling for Less: The Challenges and Opportunities of Manufacturer Coupon Clearing

Let’s talk about coupon clearing.

More specifically, the last stage of the Life of a Coupon process that delivers the processing of the coupon and the settlement of face-value funds between the manufacturer who issued the coupon and the retailer who accepted it.

A recently announced partnership between Quotient Technology and Mandlik & Rhodes, a smaller coupon clearing house, promises to shake up the duopoly Inmar Intelligence and NCH Marketing Services have enjoyed for decades, and to provide better services and lower costs for CPGs. Will that come to pass? We’ll see. But to really understand what’s possible and what it would take to disrupt the coupon clearing industry, let’s take several steps back for a brief overview of the business of issuing, processing and clearing of manufacturer coupons.

Life of a Coupon: The Industry Value Chain That Powers Manufacturer Coupons

Let’s talk about coupons.

More specifically, the full value chain of activities and industry players that constitutes the ‘Life of a Coupon’ – from the CPG manufacturer to the consumer to the retailer’s checkout register and back to the manufacturer.

Print or Digital: The Trade-Offs Brand Managers Face When Choosing Between Paper and Electronic Coupons

Let’s talk about coupons.

More specifically, manufacturer coupons issued by major brands for consumers to redeem against every-day food and household purchases at grocery and drug stores.

Why, despite the appeal and growth of digital incentives, have traditional paper coupons continued to reign supreme? Is it just a matter of time to change consumer adoption habits, or is there more to the physical paper coupon that accounts for its longevity and continued popularity?