Mixed response for ISP's attempt to tackle coupon malredemption

by Stuart Derrick, Promotions & Incentives 05-Sep-08, 09:30

The problem of incorrect coupon redemption will take up to four years to resolve and requires a more softly-softly approach with retailers, ISP chairman Clive Mishon has said. However Mishon conceded Tesco is refusing to co-operate with the trade body's efforts.

"Last year, we could not get anybody interested, but we have had a show of support from retailers, including one of the big three," said Mishon. "(Solving malredemption) is a long game, and a bit like pulling teeth, but we can't approach it unilaterally or go on the attack."

Last year, ISP director-general Edwin Mutton threatened to gatecrash supermarket shareholder meetings after retailers refused to address an issue that is costing manufacturers £60 million a year.

The ISP's coupon committee is set to meet on 19 September to devise a strategy, which is expected to include a request for retailers, manufacturers and coupon-handlers to increase their technological investment

Recent research has revealed that incorrect coupon redemption is abating. In a survey by CCB fast.MAP/Marketing-GAP, 56 per cent of respondents said they never wrongly redeemed their coupons, compared with 49 per cent last year.

Malredemption occurs when a shopper is given a discount for a product unrelated to the coupon being traded in.