Bi-Lo to trial on-demand couponing system?
Plans have been announced for the touch screen kiosk-based Matthias MoneyBoard (MMB) coupon dispensing system to be piloted in fifteen Bi-Lo/Bruno's stores this summer.
According to Matthias MoneyBoard, the plans being drawn up are to test the systems during summer 2006 in fifteen Bi-Lo supermarkets in the Southeast United States. The retailer operates 335 stores in South Carolina, North Carolina, Georgia, Tennessee, Alabama and Florida.
MMB provides interactive, web-based coupon dispensing systems for grocery retailers and other retail stores, in the form of three free-standing touch-screen kiosks in each store. Each kiosk has two screens displaying a total of 24 coupons at any one time.
On-demand kiosks When a shopper touches the image of a coupon on the screen, the kiosk instantly prints out that coupon, along with instructions on where to find the item in the store.
The terminals are supported financially by product manufacturers, which pay small hourly fees for each coupon displayed. No additional fees are charged until coupons are redeemed. According to John T. Matthias, president and CEO for Matthias MoneyBoard, the pre-determined fee paid by each manufacturer is held in an escrow account until each week's redemption reports are finalised.
Campaign controls The sponsoring manufacturers control the maximum number of coupons redeemed and the coupon amount, while MMB manages all other aspects of the programme for both the manufacturers and the retail stores.
Data is transferred via secure internet protocols, and up-to-date reports of redemption activity are constantly available through a password-protected web-based interface. Manufacturers can also change, add or discontinue their coupon marketing programmes within 48 hours.
Sponsor benefits According to MMB, there are a number of manufacturer benefits to on-demand coupon issuance, such as:
- Control over total coupon liability;
- Fast competitive response, with launches in a few days;
- Only paying for actual performance;
- Managing and track coupon programmes online;
- Greater advertising presence in retail stores;
- On-demand coupons are usually cheaper to issue than FSIs;
- Faster disposal of overstocked or expiring products;
- Increasing market share on new or existing products;
- Greater convenience for shoppers;
- Eliminating clearing house processing;
- Reducing the risk of coupon fraud;
- Incentivising retailers to carry your product lines.
The Matthias MoneyBoard system also helps control fraudulent coupon use. A store must carry the promoted product and it must be in stock before the item even appears on the kiosk's screen. In addition, coupons cannot be redeemed if the featured item is not purchased at the time.
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