E-coupons Trade Data for Savings

The biggest problem with online coupons has been the magnitude of the impact. There simply aren't enough redemptions from online efforts to compare to the impact of more broadly distributed coupon programs. The benefit of knowing who is redeeming can be powerful, but the ability to get those insights is not limited to e-coupons. In fact, there are ways to achieve that with paper coupons, including the most common coupons: FSI's.

Through intelligent analysis of retailer frequent shopper data, it is possible for both retailers and manufacturers to understand the CONSUMER DYNAMICS of all their coupon promotion programs. In addition to the demographics and other information on redeemers, frequent shopper data can reveal the PRIOR PURCHASE BEHAVIOR of coupon redeemers. That's the kind of actionable information that can help manufacturers improve the efficiency and effectiveness of their coupon promotion efforts. The data is already there; the challenge is to organize reports that will reveal the insights into coupon redemption behavior.

Ken Wyker, President, Circular Logic

Sounds good to me but basically depends on how much you need to spend (that you wouldn't spend normally) in order to save anything (and then, how much would you save). I've occasionally accepted such offers if I wanted the item anyway or wanted to try the site or shop but have ignored them more often than not if it meant going out of my way or spending too much to save too little. But I know I'm frequently an exception and think that in general these coupons may well encourage people to make a purchase that was not necessarily planned.

Bernice Hurst, Contributing Editor, RetailWire

Giving up personal information for a savings on a purchase may actually turn off more people than it turns on.

Is the objective of a coupon to gain information about the person purchasing your product or is it to stimulate trial or incremental purchase? If it is to gain information, then what value is that information if not to stimulate trial or incremental purchase?

Over 80% of purchase decisions for grocery store products are made in store. Is there enough value gained for the cost of gathering this information?

It seems to me that this is simply an alternate means of consumer research. A means I question because it seems so unnatural; enough so that it may skew the results.

Anonymous