CoolSavings buys up targeted loyalty solution

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By: Wise Marketer Staff |

Posted on February 17, 2004

CoolSavings buys up targeted loyalty solution

The US-based online direct marketing and media company, CoolSavings Inc., has purchased the Targeted Marketing Services (TMS) business of Alliance Data Systems, in order to expand its strategic capabilities for frequent shopper cards and paperless coupon solutions for grocery retailers and consumer packaged good (CPG) manufacturers.

The purchase includes TMS's technology, a number of patent rights, CPG contracts, retail relationships, and other assets related to the delivery of electronic customer loyalty programmes. CoolSavings will also maintain TMS's relationship with grocery retailer The Kroger Co., continuing to manage its Kroger Plus Internet Coupons electronic customer loyalty programme.

Through the purchase of TMS, CoolSavings will now offer retailers and manufacturers a solution that combines grocery loyalty programmes with an interactive communications channel made possible by the increasing popularity of e-mail and the internet.

Better for shoppers "The technology will offer reliable security for the manufacturer and retailer, and greater simplicity and convenience for the shopper," said CoolSavings' senior vice president of retail partnerships, Christine McNicholas, who is leading the effort to leverage the new technology and relationships with grocery retailers.

Matthew Moog, president and CEO for CoolSavings, explained: "Through the acquisition of TMS's technology, relationships, and expertise, we have enhanced our capabilities and taken a major step in the evolution of our internet-based loyalty marketing."

Better for suppliers The addition of electronic loyalty solutions is a good match for the company's existing range of targeted marketing services, now offering grocery retailers and CPG manufacturers more choices for interacting and building relationships with consumers. At the same time, the same solutions provide the consumer with more choice over where they make their savings.

Managers and staff at TMS have been hired by CoolSavings to support uninterrupted service, ensuring a smooth transition and the strategic expansion of frequent shopper card and paperless coupon programmes.

CoolSavings' cash purchase of TMS from Alliance was effective from February 6th, 2004, utilising working capital. The company estimates a small negative impact on 2004 earnings as it works to build and develop new customer relationships, and will provide a better estimate of the potential impact when its second quarter financial results are released.

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