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A&P SIGNS UP FOR CUSTOMER-SPECIFIC, DIRECT-MAIL SYSTEM

MONTVALE, N.J. -- In an effort to lure more high-volume shoppers to its stores, A&P here has contracted with a direct marketer to send customized direct mail to shoppers' homes. The direct-marketing software system uses laser and print technologies with A&P's frequent-shopper databases to deliver value-added incentives to A&P's top shoppers.The software, known as market logic, analyzes a pool of information

MONTVALE, N.J. -- In an effort to lure more high-volume shoppers to its stores, A&P here has contracted with a direct marketer to send customized direct mail to shoppers' homes. The direct-marketing software system uses laser and print technologies with A&P's frequent-shopper databases to deliver value-added incentives to A&P's top shoppers.

The software, known as market logic, analyzes a pool of information on A&P frequent shoppers as stored within a large data-processing center. It is completely built off a customer-relationship management model based on how the customer shops the store and how he or she buys in particular categories.

The software may show, for instance, how a particular household has qualified for 10 coupon offers. With this specialized marketing intelligence, A&P can use the system's laser-printing technology to mail millions of pieces of mail that are completely tailored to each household.

"Understanding our customers' shopping behaviors, lifestyles and requirements -- and satisfying those needs -- is key to A&P's customer-centric focus," said Cheryl Palmer, senior vice president of strategic marketing for A&P. She explained that A&P can now communicate pertinent and timely offers to valued shoppers on a more frequent basis.

"From this system, we can discover the purchasing history, behavior, and demographics on each customer," said Rick DeSanta, vice president for corporate affairs at A&P. He explained that with the direct-marketing software from Marketing Logic, a subsidiary of St. Petersburg, Fla.-based Catalina Marketing Corp., A&P gets a profile of each individual store. "If people tend to buy heavily in certain parts of a store, it enables us to create incentives for buying in other store areas. It's a real way of examining purchasing for the individual that tells us which are the preferences."

A&P, which will implement the direct-marketing program within the next couple of months, is one of many supermarket chains looking for more creative ways to plumb customer data. While the new direct-marketing system does not replace any earlier versions, "this is a program with added and targeted value to our customers, based on their purchasing behavior. Offers are more valuable to consumers if they relate to what they buy," said Ellen Evans, director of consumer marketing at A&P.

"With any kind of loyalty-building program, your objective is to keep that individual over the long term," said Evans. She noted that in this case, manufacturers who will be looking for awareness of their brands will pick up the costs, rather than A&P.

"Every piece of direct mail is customized to the household of each top shopper," said a spokesman for the company that signed the A&P contract. He explained that the software enables A&P to communicate month to month strategically with its best shoppers to develop loyalty programs for its brands. For example, if a household is purchasing charcoal bricks but not lighter fluid, A&P may decide to aggressively promote the latter to top shoppers.

"We are trying to reward the loyal customer, but build the business further," DeSanta said.