Shoppers Embrace New Coupons

CAROL ANGRISANI

SCHENECTADY, N.Y. — When Mona Golub scanned her loyalty card at Price Chopper's new coupon kiosk recently, her savings included $1.50 off a 12-pack of Poland Spring water and $1 off Smart Balance popcorn.

The offers were valuable to her not only because of the discount, but also because she likes both items.

That's the goal of iSaveToday, a new targeted-marketing program now available in all 115 Price Chopper stores, said Golub, who is spokeswoman for the retailer. Shoppers who scan their AdvantEdge loyalty card at the iSave kiosk, which is located at the store's entrance, receive a sheet of paper containing about eight offers and promotional messages selected just for them based on their shopping history.

“ISaveToday coupons personalize offers to consumers, giving them more of what they want,” Golub told SN. “The result is that consumers end up with better and more usable offers, we end up selling more product, and manufacturers get higher coupon redemption.”

Price Chopper is the first retailer to roll out the technology, although Ukrop's Super Markets, Richmond, Va., conducted a pilot in five stores last year under the brand name Savings Spot.

“This is revolutionary, and we're the only one that has it right now,” said Golub.

Though the program is still new, early indications show that consumers redeem more than half of the coupons they receive.

“The redemption rate is astronomical,” Golub said. “It's amazing how many consumers have already found and used the machine.”

Provided by Hartford, Conn.-based Tactical Retailing Solutions/ Entry Point Communications, the technology customizes offers based on an individual shopper's previous 64-week shopping history. EPC's DealSense software analyzes category purchase history, purchase price history, purchase cycle and other information to provide the most relevant offers for each shopper.

“The software understands what brands a customer has purchased and with what regularity,” said Golub.

That means that if a consumer is known to purchase Maxwell House coffee every five weeks, he/she may receive a coupon for Maxwell House to encourage another purchase before the five weeks are up, Golub said.

“Even though the machine may have offers for other brands, it will offer savings for the brand you're known to purchase,” Golub said.

Under another example, a young mother may be loyal to a certain diaper brand and will buy that brand regularly. A brand marketer may target her for one or more reasons, such as to maintain her current purchases, or to get her to trade up or buy another product in the brand line, according to Seth Epstein, president, Tactical Retailing Solutions/Entry Point Communications.

“This is a marketer's dream,” Epstein said, citing the system's one-to-one, consumer-centric marketing capabilities.

About 20 manufacturers representing about 50 brands are currently participating in iSave at Price Chopper. They include Nestlé, Procter & Gamble and other big firms.

Ranging in face value from 25 cents to $1 off and higher, the instantly redeemable coupons are printed within five seconds on a perforated sheet of paper. Price Chopper shoppers can even sign up to receive a weekly email notifying them which coupons are waiting for them at the iSave kiosk.

“We'll tell you what coupon savings you'll get when you scan your card and about the weekly specials we have in-store,” according to Price Chopper's website.

Shoppers receive one coupon page per shopping trip, for a total of two per week.

Price Chopper is leveraging iSave for its own use. Not only do iSave machines provide Price Chopper's weekly specials, they also include coupons for its private labels.