It's hard to believe that coupons are 100 years old. It all started with Claude C. Hopkins, who created key-coded couponsin 1909. Coupons enabled him to test headlines, offers and propositions against one another. Analysis of consumer feedback enabled him to improve his ads, thereby increasing the number of responses and improving the cost effectiveness.

Hopkins' innovations gave birth to what we now call direct marketing. His book, Scientific Advertising, is a must-read and save for all marketers. All this came about 100 years ago, long before radio, television, computers or the Internet.

The coupon came into it's own during the 1930's as a result of the Great Depression. Many from that era learned frugal habits that remained with them for the rest of their lives. They regularly clip, save and redeem coupons found in newspapers, inserts, magazines and direct-mail flyers.

FRUGAL HABITS

Now, as result of another economic recession, frugal habits have become popular again. With many consumers making lifestyle adjustments to reduce spending, coupon redemption numbers have soared. But today's bargain hunters soon discovered the Internet as an entirely new source and a whole new way to hit upon savings.

The Nielsen Company reports, ``More U.S. consumers are using coupons when purchasing consumer packaged goods items with 1.6 billion coupons redeemed in the first half of 2009, up 23 percent from last year.''

According to Experian Simmons, ``More than 40 million people currently print online coupons, and continued consumer adoption is being driven by many factors. The tough economic environment is one factor, but experts say that users expect to continue their current saving behavior in the future -- even in good economic times.''

Electronic coupons offer the same benefits for retailers as any discount program by driving consumer traffic, building loyalty, increasing sales and attracting new customers. They also eliminate printing costs, reduce paper waste, can be updated more quickly and have higher redemption rates than their print counterparts.

``We're seeing increased momentum in all aspects of our business,'' said Steven Boal, CEO of Coupons.com. ``Consumers are adopting digital coupons in droves as they search for savings, and more leading brands are turning to digital coupons to build relationships with those consumers. In just over five months, the savings printed on our digital coupon network in 2009 surpassed the $313 million in value printed in all of 2008. We see no signs of a slowdown.''

CouponMom.com saves time and money with lists of best grocery deals and coupons in all 50 states. With grocery coupons available, they match your store's weekly sale items. Download their free eight-page savings tutorial. It reveals an easy-to-use program that enables buying your favorite foods at rock-bottom prices.

SEARCH ONLINE

If you're not a savings searcher yet, enter these two words in Google: ``coupons for'' then add whatever word you wish to the search, such as restaurants, computers, shoes. Make searching a habit, and enjoy the savings!

What's my take on digital coupons? The present growth in this type of marketing and sales tool confirms Hopkins' early research. Coupons, in print or online, truly do help companies test their message, analyze consumer behavior, increase sales and improve cost effectiveness. Without a doubt, increased awareness and use of digital coupons by both marketers and consumers are converging to drive growth. And this surge in turn stimulates more innovation.

So isn't it time for you to think about how coupons can help expand your business?

Jack G. Hardy is a consultant who is active in SCORE-Counselors to America's Small Business, the Direct Marketing Association and Miami's Venezuelan-American Chamber of Commerce.

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