Kyle McNamara

Here are two updates to my earlier post on using online coupons to enhance customer relationships.

First, a WSJ article in which the author looks for online coupons for consumer staples and provides an excellent comparison of several available coupon websites. I found it interesting that the aggregation sites seem confusing to navigate and spotty in their selection, yet there is a $1 off coupon available from the front page of organicvalley.com. She mentions that consumers redeemed only about 1% of coupons issued in 2007. Although this a somewhat respectable response rate to a marketing campaign, it also illustrates that there is plenty of room for improvement in creating targeted coupon mailings to consumers.

Second, an article in PROMO Magazine that reveals that, while coupons are effective for driving sales, 70% of purchase decisions are made in the store, and in-store displays and samples can be just as influential. Anyone who knows me knows I am a huge fan of Costco, and I naturally started thinking about the samples they offer. At noon on a Saturday, the sample army is out in full force, offering tastes of frozen pizza or the newest hummus dip. Many people partake so they can skip lunch or keep the kids happy, but many (including myself) also end up buying the product they’ve tried. While Costco likely analyzes the lift they receive from offering these samples, I wonder how much time they spend understanding the behaviors and preferences of people who visit on different days of the week or times of day – e.g., if I visit on a Tuesday evening, I am probably looking for that night’s dinner and would be interested in entrées, whereas a Saturday noon visit is to stock up for the next few weeks and I would be more open to snack foods and beverages. In addition, why not analyze my past purchase behavior and send me offers for new or complementary products – or offer these products for sampling at times you know I (and consumers who behave like me) will be in the store for sampling, then send me targeted mail letting me know they will be there?