Question

Topic: Strategy

Coupon Redemption Compensation

Posted by Anonymous on 12/4/2008 at 8:53 AM ET 25 Points
Has anyone ever heard of a coupon program for businesses where they pay based on actual results of redeemed coupons and not for the upfront marketing aspect...

In other words... "we will create and distribute a coupon for you and if someone comes in and uses it... you pay us $1.00" or something to that effect.

If this exists... how do they track businesses and enforce payment? Kind of like google click-thru advertising but off of the net.

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RESPONSES

  • Posted by CarolBlaha on 12/4/2008 at 9:52 AM Accepted
    Any manufacturer coupon pays the retailer only upon redemption.

    But as you have figured it out, it would be a nightmare to enforce. Retailers are incentivated to return manufacture ooupon as they get paid to do so.

    You are asking them to pay you, and on the honor system.

    If I were going to pursue this idea, I'd ask for fee upfront -- and rebate back the retailer a number for each coupon redeemed. Then the dealer has incentive to redeem-- and you will have proven your technique works, making it easier for retailer to justify renewing with you.
  • Posted on 12/4/2008 at 9:54 AM Accepted
    It does exist. The coupon codes have an EAN code which is scanned. At the end of the promotional they send you an invoice with the scanned coupons per shop and sometimes per hour per shop incl. the socio-demographics. regs
  • Posted by michael on 12/4/2008 at 10:43 AM Accepted
    Not sure if you mean the national coupons or a local program. We've done local and the special code is how it is tracked.

    YES, you need to work with a company you can trust to get paid. Be very careful.

    Michael
  • Posted on 12/4/2008 at 10:49 AM Author
    I was thinking local businesses like pizza places, contractors, etc.

    I don't trust them to pay me which is why I asked.

  • Posted by CarolBlaha on 12/4/2008 at 11:00 AM Member
    I wouldn't trust them either-- or trust they'd scan the coupon. You have absorbed all the start up costs and overhead. You should be paid for that-- and one of the reasons I like a rebate back program.

    Coupon advertising is a hard sell. Consumers see an ad 4, 5 , 10 times before acting. When they do-- does that mean only the last ad time they saw before acting "worked"? No-- all the impressions contributed to moving that consumer to action. But that isn't how the retailer sees it. So I understand your logic in this idea. And in a perfect world, its a very good idea-- in a perfect world.
  • Posted on 12/4/2008 at 11:19 AM Author
    oh to be able to trust people... wouldn't that be nice.
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