Print them yourself - coupons go online
Australian Financial Review - Nov 29 2004

http://www.afr.com.au

The use of coupons is in its infancy in Australia, and the big food retailers still refuse to accept them, but one company, Couponstar, is finding success in the new area of online coupons.

An online coupon is another term for a "print at home" coupon. Companies offer consumers a coupon online via a website, online registration or survey, email or a banner ad that can be printed and taken to a retailer or the company for redemption.

Couponstar is owned by the privately-held local company Cashstar International, which was set up in June 2002. Cashstar and Couponstar's revenue increased 120 per cent during 2003-04 (a revenue figure was not available) and Couponstar executive director Jared Keen predicted it would grow 140 per cent during 2004-05.

Two years ago Cashstar bought the exclusive rights to Coupon Inc's online coupon technology outside the US in 2002. Cashstar initially used the technology for online cash certificates to boost business at casinos, clubs and hotels, including Casino Canberra and Panthers in Sydney.

It then moved into e-coupons for consumer goods, retailers and pharmaceutical companies with the launch of Couponstar in September 2003.

Couponstar's clients include Procter & Gamble, Priceline, Alpine Electronics, Kennards Hire and King Gee in Australia, plus Muller Vitality Yoghurts and Kimberly-Clark in Britain.

Mr Keen said Couponstar's clients were using the online coupons for sales promotions and to encourage repeat purchases or trial sales.

The technology is being used by Kennards on its website, offering customers a discount when they hire a truck on weekdays.

"It was a good way to leverage our investment in our website," Kennards national marketing manager Michael Johnstone said.

"The promotion is about steering people away from [truck hire] on weekends to through the week. It's very inexpensive because we don't have to worry about printing costs."

Mr Johnstone said Kennards had not yet reached its goal of 100 coupon redemptions but has seen a spike in its online reservations for weekday truck hires.

Couponstar's average redemption rates for online coupons is 20 to 25 per cent, compared with offline redemption rates of 2 per cent.

"The biggest resistance towards coupons in Australia is the reluctance of retailers . . . to accept them," Mr Keen said.