Below we’ve outlined the basics behind four of the most popular outlets for multi-media coupon distribution and redemption.

1. Text Messaging Coupons

What are they?

Text message coupons are virtual coupons sent to a subscriber’s cell phone in the form of an image (barcode) or text message. To redeem the mobile coupon, a customer would need to show their phone to the cashier so that the bar code can be scanned, or show the text messaged coupon at checkout.

The Benefits

• Customers always have their cell phones with them.
• Messages can be sent out instantaneously, and the message is understood immediately.
• Customers who don’t use their email regularly now have another way to receive discounts and deals.
• The price structure for text message marketing is much lower than many other digital and print media.

Potential Drawback

Text messages can quickly become disruptive if the content isn’t consistently credible and useful. A text message-marketing program must earn (and keep) a reputation for being highly beneficial to the customer.

2. E-blasts Coupons

What are they?

E-blast coupons are direct email marketing messages that “blast” out to your database of email subscribers.

The Benefits

• With email marketing, you can easily track coupon redemptions and monitor the open rate (the number of emails that are confirmed to have been opened by the recipient.)
• Increased brand awareness. Customers can spread the word about your brand with the “forward to a friend” feature; the buzz builds exponentially, and you don’t have to lift a finger.

Potential Drawback

Email coupons cost more to send than text messages, and the customer must have a working printer in order to redeem their savings. Also, some customers may not ever receive the messages due to SPAM flitters or other email viewing issues.

3. Groupon.com

Every day, Groupon.com sends out an email featuring one incredible local deal. A subscriber who wants to get the deal must buy it before the offer expires at midnight. If it isn’t purchased by a minimum number of people, the deal for that day is canceled. Because Groupon guarantees the business offering the Groupon deal a minimum number of customers, the discounts that are offered are one of a kind. Groupon can generate a tremendous amount of attention for the featured business of the day and provides an incredible opportunity to tell a very large audience what sets your brand apart.

The Benefits:

• Retailers can set a minimum number of purchases to increase their buying power.
• People will often repost on their Facebook pages and forward the deals along to their friends.
• The Groupon deal of the day is often a popular topic in conversation; it’s a story that people like to pass along.
• A large audience is listening for what you have to offer.
• As everyone must buy the Groupon during the same 24-hour period of time, you’ll know how many Groupons were purchased so that you’re able to anticipate demand.

Potential Drawback

Groupons do not have to be used the same day they are purchased, so it’s important to have a plan in place for controlling and managing the response your Groupon generates. You need to be able to allow for large-scale redemption that won’t hurt your bottom line or the customer experience.

A few ideas for Groupon.com offers:

• Tell a story: use this opportunity to provide current and prospective customers with a powerful reason to believe in your brand. For example, if you want to highlight your catering services, create a Groupon that features your best catering offerings at a great price.
• 50% OFF a holiday dinner for four. Make sure you have margin built-in and enough staff to support a high demand.
• A signature or commonly used product. Buy it by the caseload if enough people signup for your Groupon to help ensure that you maintain a margin

4. Coupon.com

What is it?

Coupons, Inc. is the “leading U.S. provider of consumer-printed coupon marketing and technology solutions.” (couponsinc.com). They provide a web module that can be built into store sites for easy management of vendor coupons.

The Benefits

• Customers who typically base their purchasing decisions on the coupons they clip can now find all the coupons in one place—your website.
• It’s easy to track coupon redemption with the built-in features that coupon.com provides.
• A system for limiting how many coupons a customer can print is included.

Potential Drawback

Customers have to be invested enough to remember to go to the web site and wade through offers to find the ones they care about, rather than having a text or email coupon come to them with just a few really great deals. This is for die-hard coupon-clippers, and won’t attract new store visits from other shoppers.

Interested in developing a multi-media coupon program? Call or email me today.

“Wow, how much did she spend?” I wondered. In twenty-eight years of marriage, I can’t recall a conversation about coupons, excitedly or otherwise.

Is coupon pandemonium commonplace in America today? Well, maybe not pandemonium, but research indicates that both the number of coupons available, and their redemption rates, is rising; from 2008 to 2009, redemption rose 27 percent.

“Without question, coupon usage is undergoing a renaissance,” said Todd Hale, Senior Vice President, Consumer and Shopping Insights for Nielsen. Overall, 1.6 billion coupons were redeemed in the first half of 2009.

“These findings from Nielsen suggest that the increased coupon usage not only helped consumers stretch their budgets but also provided meaningful sales impact to manufacturers and retailers,” said Matthew Tilley, Director of Marketing for Inmar, a company that handles the bulk of coupon processing in the U.S. “Coupons have always been an effective way to encourage trial and repeat purchase and are proving to be a bright spot in an otherwise dreary economic environment.”

We believe that coupon books are extremely relevant in today’s economic environment, and that food retailers should consider including one or two coupon book promotions in their annual marketing budget. COSTCO, for example, has traditionally done an excellent job with quarterly coupon book mailings. Twenty-four, thirty-two or larger page count coupon books allow retailer’s to promote store/department specific benefits, as well as traditional item and price features and manufacturer and private label coupons. Coupon books are a great way to feature signature deli, and bakery items, and showcase meat, seafood and produce departments.

Coupon books can be structured to accommodate multiple weeks of offers to offset distribution costs. There could be four sets of weeklong coupons, coupons with a four-week redemption rate, or a combination of effective dates. Daily deli deals are an effective offering. There are also an array of coupon book sizes and paper stock options that will set your offering apart from competitors. There are no rules with the coupon book “look” or coupon offers—use your imagination and have fun!

This is a short, but sweet Idea of the Week, because I’m off to redeem a Cold Stone Creamery BOGO coupon for some delicious chocolate ice cream!

Why wait 10 years between anniversaries to celebrate?

Here’s a couple of suggestions to help you market your anniversary every year.

1. Get a special logo design for your anniversary. This will allow you to promote your anniversary on every page of your weekly ads, store posters and shelf signage. Here’s an example of a very simple anniversary design:
   

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2. Celebrate the anniversary for an entire month — not just one week! If you are celebrating a milestone anniversary (20, 30, 40, 50) we’d recommend that you celebrate the anniversary all year. Incorporate the special anniversary logo to accompany your normal logo in all ads. Here’s an example of a milestone anniversary logo:
   

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3. If you’re going to celebrate an anniversary – how about some presents (for your customers)? Thank your customers for supporting your store. Gift Card giveways are a great way to celebrate.
   

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4. Include some interesting copy about the history of your store. If you’re lacking history (interesting history that is) about your store, you may want to include some history of supermarkets in general over the decades. Here’s a link to FMI’s website posting for 75 ideas for 75 years. Interesting information, including 1972: The year that many retailers elected to try 24 hour store operating hours.
   

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5. Celebrate with special anniversary bag designs for milestone anniversary. If you’re going to celebrate the anniversary all year, why not have a special anniversary bag design?
6. Send out some press releases commemorating the milestone anniversary. Better yet, encourage your local newspaper to interview a founding member – 1st, 2nd or 3rd generation to talk about the changes in the business over the decades.
7. Tie in a “Customer Appreciation Day” with your Anniversary celebration. Thank your customers for their patronage and encourage them to register in your store for special customer appreciation prizes.
   

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8. How about some special direct mail marketing events? We’ve worked with retailers who have used large envelopes to stuff special offer sheets along with a letter from the Owner/Manager announcing the upcoming anniversary event. You can also send out postcards announcing your anniversary. (see example of front and backside of a postcard):
   

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9. It’s a good idea to include a simple map to your stores for those that haven’t found their way to your store yet – especially if the anniversary is a first or second year anniversary:
   

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10. Use the special anniversary as a reason to celebrate with special offers that your competitors won’t have available the same week. Use the special features to draw traffic by using at least 40% of the front page of your weekly ad.
    

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Need some help planning your next anniversary sale? Just call and we can help you prepare a great event worth celebrating.

Have a great week.