Understanding the Coupon Mix

The Challenge

The brand saw good results shifting from the usual FSI-exclusive approach toward more in-store promotions. Electronic shelf and handout coupons garnered significantly higher redemption rates than FSIs, which had dropped in performance in recent years. But, closer-to-the-shelf meant a higher cost. Given the tradeoff between targeting, costs and consumer response, in which method should the brand invest?

The Solution

The answer was not to pick the highest redemption or even the lowest cost. Instead, they turned to Inmar VSI Promotion Consulting's coupon optimization to assimilate a variety of data to provide the most comprehensive and brand-sensitive direction.

First, Inmar VSI analyzed historical redemption data to see attribute and performance differences between the methods. That analysis produced trends and comparisons in terms of effectiveness (redemption and volume moved) and efficiency (cost per unit moved).

Second, Inmar VSI assessed each offer to understand the factors impacting success, including:
• Coupon focus. Good on any product or only good on a specific flavor or size?
• Timing. When was the offer given?
• Sampling. Was in-store sampling present?
• Single vs. Dual offers. A one-time offer or an offer for now and later?
Finally, Inmar VSI incorporated all of that data to produce an optimal mix of coupon methods for the brand going forward.

The Results

Instead of an overly simplistic answer to the challenge, Inmar VSI provided meaningful data to the brand to aid efforts to balance promotional plans that effectively meet specific marketing objectives. Inmar VSI also provided guidelines on face values and recommended supporting events to deliver a comprehensive coupon distribution plan. In short, Inmar VSI armed the brand with the information needed to create objective-focused promotional plans.

The best coupon optimization doesn't stop after asking "where" and "how much." It goes beyond, looking at "when," "how" and "to whom." Asking the hard, in-depth questions and analyzing the data for answers makes Inmar VSI's comprehensive coupon optimization process turn coupons in the strategic promotional tactics your brand needs. Inmar VSI is more than your FSI partner, we're your strategic couponing partner.

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