A coupon is a marketing tool that offers customers discounts or incentives to purchase a product or service. Typically issued by companies, coupons are designed to attract new customers, encourage repeat business, or promote specific products. Now, let’s dive into how coupons began and evolved over time.

A voucher, on the other hand, is a certificate or document that entitles the holder to a specific product or service, often prepaid. While similar to coupons, vouchers are typically used for broader, predefined offerings rather than discounts on individual items.

Three examples of a voucher and how they're used are as follows: 

Gift Cards: A prepaid voucher for a specific store or online platform, allowing the recipient to choose their own purchase.

Travel Packages: Vouchers for flights, hotels, or all-inclusive travel experiences, often redeemable at specific providers.

Spa Services: A voucher for a massage, facial, or other treatment at a wellness center, covering the full cost of the service.

Now that we know the difference between the 2, let's delve into the history of coupons. 

The Beginning - The First Coupons: Why, How, Where, and When

Imagine this: It’s the late 1800s, and Coca-Cola is just starting to introduce its fizzy drink to the American public. Back then, Coca-Cola wasn’t the giant we know today. In 1887, Asa Candler, the brilliant marketer behind the brand, wanted to create buzz and get people to try their product. So, he came up with a revolutionary idea — the almighty COUPON!

This was widely considered to be the first coupon in history - a handwritten note offering customers a free glass of Coke. The coupons were distributed via snailmail and magazine ads, effectively making Coca-Cola one of the earliest adopters of direct-to-consumer marketing. It was a resounding success. By the early 1900s, Coca-Cola had become a household name, and coupons played a major role in their popularity. 

The Early 1900s - Coupons and Loyalty Programs During the Start of Mass Production 

Of course, the copycat syndrome set in as other companies in other industries aimed to replicate Coca-Cola's success. Grocery stores, food brands, and household goods manufacturers began printing coupons in newspapers and magazines. Coupons had become a tool to incentivize first-time buyers while fostering brand loyalty. 

It was around this time that trading stamps also became popular. Customers would earn stamps for purchases, which they could later exchange for products. While not technically coupons, trading stamps set the stage for the loyalty programs we see today. Coupons were beginning to cement their place in the consumer landscape.

The 1930s and 1940s - Coupons in Tough Times

The Great Depression set in during the 1930s. People were struggling to make ends meet, and coupons became a lifeline for many families. Companies, understanding this economic hardship, used coupons to attract cost-conscious consumers. During this period, grocery stores especially leaned into coupon promotions as a way to drive foot traffic.

The 1940s brought World War II, and with it came rationing. Coupons—this time issued by the government—played a critical role in managing scarce resources. They further ingrained the concept of vouchers in everyday life. 

The 1950s and 1960s - The Golden Age of Paper Coupons

Post-war in the 1950s saw an explosion of consumerism. (This era is often called the golden age of paper coupons.) Suburban households were growing, supermarkets were booming, and families were looking for ways to stretch their budgets.  Companies like Procter & Gamble and General Mills ran massive coupon campaigns, offering discounts on household staples.

Newspaper inserts became the primary way people accessed coupons. These inserts, filled with discounts, were eagerly clipped every Sunday. It was also during this time that organizations like the Coupon Information Corporation (CIC) were formed to manage the growing use of coupons and combat fraud.

The 1970s and 1980s - Supermarkets and Scanners

The 1970s brought a wave of innovation. Supermarkets started using barcode scanners, which streamlined the process of redeeming coupons. This technology allowed stores to process coupons faster and track which promotions were most effective. Simultaneously , TV advertising in the 1980s brought coupon promotions to the masses. Brands would air commercials offering discounts, driving consumers to stores with coupons in hand. It was also during this time that double-coupon promotions became a trend. Shoppers could redeem coupons for twice their face value, making saving money even more enticing.

The 1990s - The Rise of Digital Technology

By the late 1990s, the internet was beginning to change everything. The period marked the beginning of a shift from paper to digital coupons, paving the way for the innovations of the 21st century. Websites like Coupons.com emerged, offering printable coupons that users could access from home. This was a game-changer, as it eliminated the need to wait for Sunday newspapers. Grocery stores also began experimenting with loyalty cards and customer accounts, which allowed shoppers to load digital coupons and use them. 

The 2000s - Mobile Coupons and E-Commerce

The late 2000s saw the rapid adoption of smartphones, which brought couponing into the mobile age. Apps like Groupon and RetailMeNot made it easy for users to find discounts on the go. QR codes also became a popular way to deliver mobile coupons, offering seamless redemption at checkout. 

E-commerce platforms like Amazon started incorporating digital coupons into their shopping experiences, allowing customers to "clip" discounts with a single click. This integration of coupons into online shopping marked a significant shift in consumer behavior.

The 2010s - Personalization and Big Data

As technology advanced, so did the sophistication of coupons. Retailers began using big data and machine learning to deliver personalized offers. Instead of generic discounts, shoppers received coupons tailored to their buying habits.

Social media eventually also became a key player. Platforms like Facebook and Instagram allowed brands to distribute exclusive discounts directly to their followers, driving engagement and sales. Influencers also came to play a role, sharing promotional codes with their audiences.

2020s - AI, Automation, and Beyond

Fast forward to today, and coupons are more dynamic than ever. Artificial intelligence (AI) powers many of the personalized offers you see online, predicting what you’ll want before you even know it. Automation tools make it easier for brands to manage and distribute coupons across multiple channels. 

Blockchain technology is also starting to make waves in couponing, offering secure, fraud-proof methods for distribution and redemption. And let’s not forget augmented reality (AR), which is being used to create interactive couponing experiences.

From handwritten notes in the 1880s to AI-powered digital discounts today, coupons have come a long way. They’ve adapted to every major shift in consumer behavior and technology, proving their enduring value in the world of commerce.

Conclusion

From handwritten notes in the 1880s to AI-powered digital discounts today, coupons have come a long way. They’ve adapted to every major shift in consumer behavior and technology, proving their enduring value in the world of commerce.

LastPrys wants to open up local brands to the world - we can't wait to see what comes next. One thing is for sure, we'll be at the forefront of the innovation!