Nov 20, 2009 (The Fresno Bee - McClatchy-Tribune Information Services via COMTEX) -- COUPONS ARE BACK -- with a twist.

Usage of coupons, which had been declining for years, surged recently as recession-battered shoppers sought ways to save money. But the trend also is being driven by shoppers who prefer new high-tech coupons, and several Fresno companies have popped up to cater to those shoppers.

These aren't the little paper squares with the dotted-line border that your grandmother likes to clip. Companies are offering versions of the money-savers both online and through cell phone text messages.

Coupon use began skyrocketing in the last three months of 2008, just as shoppers began pulling back on spending for one of the worst holiday shopping season in years. In 2009, coupon use rose 26% during the first nine months of the year compared to the same time last year, according to Inmar Inc., a firm that tracks coupon redemption. The uptick reversed years of lowered usage.

Sunday newspapers are still the No. 1 source of coupons, with more than half of households getting their coupons from that source, according to Scarborough Research, a New York firm that studies consumer habits. About a third of the people surveyed get coupons through the mail or in stores.

High-tech versions have a much smaller hold on shoppers, with 8% getting coupons via text message and e-mail, and 7% through Internet sites. In the Fresno area, about 6% of households get coupons electronically.

Traditional paper coupons also are less popular in Fresno, which ranks near the bottom of all cities in a 2008 Scarborough Research study of coupon use. Dedicated coupon users tend to come from wealthier households, and have higher incomes and higher education, said Matthew Tilley, director of marketing for the Winston-Salem, N.C.-based Inmar, which processes coupon transactions between manufacturers and retailers.

But usage of electronic coupons is expected to grow across the country as well as in Fresno, and several local companies already have formed to meet the growing demand.

Payshrink, a service that launched this year in Fresno, sends coupons in the form of text messages to cell phones upon request.

For example, customers looking for deals send a text to Payshrink's number with the word "pizza." They immediately get a list of discounts of participating pizza places and can pick the one they want. They can also text the name of a specific restaurant.

Customers then show their cell phone with the message featuring the discount to the employee at the cash register. The message includes an expiration date and a code that the cashier can write down to prevent the discount from being used again that day.

The service -- www.payshrink.com -- is free to users, but standard text message fees apply.

The company, which has not yet begun marketing to shoppers, has six businesses offering coupons and about 50 users so far. But already, Brandon Wright, 29, of Fresno, is a frequent user.

He said he wants to save money, but doesn't want to spend a lot of time doing it.

"I'm not one to get the coupons in the mail and save them," he said. "We don't have time for that, it's got to be fast and in my pocket." Because not everyone is savvy with their cell phones, promotions using them are generally geared toward a younger audience that has grown up with cell phones, said Marc Dietz, vice president of Marketing for San Carlos-based DemandTec, which uses software to help major retailers determine how best to attract customers.

"It's really natural," he said. "It's as natural as your grandmother clipping coupons." McCormick Mobile Media of Fresno also offers discounts via cell phone. Customers sign up with their phones after seeing advertising from the businesses like World Sports Cafe or First String Sports equipment shop.

The business then sends out mass discounts or notifications of special events to people who have signed up.

Founder Eric McCormick, who worked for years in the advertising industry, said coupons have become especially important during the recession. Businesses don't have a lot of money to spend on advertising that can familiarize potential customers with a brand, so they opt instead on coupons that bring a customer into the store, he said.

Shoppers are increasingly using other computer-related money-saving methods. They include getting coupons off Web sites devoted to bargain hunters, signing up for online newsletters that include coupons and participating in online message boards where visitors can post links to coupons and seek out deals. In addition, some businesses use Twitter to let customers know about discounts.

Printed coupons continue to dominate among Fresno-area shoppers seeking to pinch pennies, according to Alexis Allen, who co-founded Pocket Shopper coupon book.

The book, distributed by mail and in store racks, also offers coupons online at pocketshopperfresno.com.

"The Internet is the way to the future, but the print book is what's being mostly used in Fresno and Clovis," Allen said.

Regardless of coupon type, retailers and manufacturers want to reach coupon users because they want access to the money they spend, Tilley said. Coupons keep customers loyal but also attract new ones, he said.

Said Dietz of DemandTec: "From what I've seen, coupons can be very effective in driving sales that the retailer otherwise might not have gotten." To see more of The Fresno Bee, or to subscribe to the newspaper, go to http://www.fresnobee.com Copyright (c) 2009, The Fresno Bee, Calif. Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

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