Colour coupons see 30% higher redemption rate

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By: Wise Marketer Staff |

Posted on December 25, 2006

The latest colour printed coupons from Catalina have been yielding up to 30% higher redemption rates than the earlier black-and-white coupons, against a general backdrop of declining coupon redemption rates throughout the US, according to Catalina Marketing.

Catalina has reported that, based on recent research, its point-of-sale communications are delivering higher redemption rates since changing over from black-and-white to full colour, full graphics printers in early 2006 (see 1 Mar. 2006).

Higher redemption rate
The latest research was conducted by Catalina Marketing with the findings and methodology being validated by an independent third party, VSI Targeting, a sister company of Carolina Manufacturer Services (CMS) coupon processor.

According to the research, Catalina's new colour print redemption rates are an average of 30% higher than the company's traditional black and white prints, which have historically redeemed higher than virtually all other mass-delivered coupons.

The research, conducted over a four month period, compared the redemption rates of coupons from more than 100 different Catalina Marketing targeted offers printed in both colour and black-and-white. The new colour coupons were redeemed an average of 30% more than the black-and-white coupons.

Positive feedback too
According to Dick Buell, CEO for Catalina Marketing, "Since our colour prints were introduced earlier this year, we've had positive feedback from manufacturers, retailers and consumers alike. Our colour initiative is on course to improve what is already a highly effective platform as we continue to significantly enhance the impact and effectiveness of our targeted communications. Having these solid numbers to help validate our belief that we are making a high impact connection with the customer and delivering better results."

The study began immediately after Catalina first announced its investment in the new Epson-designed colour printers to replace the thermal printers that had been installed in retail chains throughout the US for more than 20 years. The new colour printers are already installed and working in over 89,000 checkout lanes in more than 8,200 stores throughout the US (which represents more than half of the 145,000 new printers targeted for installation by the middle of 2007).

Catalina Marketing was founded on the premise that targeting communications based on actual purchase behaviour would generate better consumer responses to marketing messages. The company's technology allows marketers to run behaviour-based marketing programmes to get the right message to each customer at the right time.

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