The increasing digitisation of coupon media makes it possible to record and process transaction data at every touchpoint on the customer journey - in real time. That means that at any time retailers can tell which customer redeemed what coupon and where.
Now retailers can link this coupon data with their own data from cash register receipts, collecting unique knowledge about customer purchasing patterns which can then be used to make a profit.
In the past this had only been possible for online retailers or brick and mortar retailers with customer loyalty cards.
Thanks to the acardo big data engine, retailers can better evaluate this data and use it for customised coupon offers with maximum personal relevance.
To develop the big data engine, acardo entered into a partnership with prudsys AG - provider of real time solutions in dynamic omni-channel personalization for retail.
prudsys AG has more than 15 years of experience in intelligent data analysis and the development of self-learning algorithms. Users of the prudsys Realtime Decisioning Engine (prudsys RDE for short) include over 200 online shops in 34 countries as well as brick and mortar retailers.
To take advantage of the multifaceted possibilities offered by machine learning algorithms, acardo and prudsys worked out the optimization potential for all coupon media and converted it into corresponding algorithms.
"Nowadays every retailer has a lot of data in his data warehouse. The problem is how to use this data to his advantage. With the help of prudsys' experience we have been able to come up with concrete optimization goals and mathematical processes for all coupon media, including check-out couponing, mobile couponing and couponing in conjunction with customer loyalty cards", explains Christoph Thye, CEO of acardo group AG. Retailers can now use the acardo engine to enhance coupons via various in-house and other media.
"An important advantage of this solution is that the engine works in the customer's computer center, which means that the data from cash register receipts remain with the retailer. Many retailers have a problem outsourcing such an important asset, even when its use is clearly regulated in contracts", continues Christoph Thye.
Advantages for retailers:
- Better targeting: Coupon offers are increasingly relevant, which increases customer loyalty
- Response rates increase and scattering losses are avoided
- Coupon values (face values) optimised, depending on customer affinity
- Profit margins optimised/maximised for retailers and industry partners
- Data from cash register receipts remain exclusively with the retailer (not forwarded to technology providers or the cloud)
Various concrete promotion objectives implemented:
- Increased purchase frequency
- Increased market share
- Longer cash register receipts