OAKBROOK TERRACE, Ill. -- One of the more interesting ideas that stuck in my head walking the NACS trade show floor was the idea of "rollback at the point-of-sale."
On the show floor, I encountered Anton Bakker of Outsite Networks, Norfolk, Va., and he referenced how customers today love dispensers that automatically roll back price discounts. So, naturally, they ought to be equally amazed by rollback at the POS.
For years, consumer packaged goods (CPG) manufacturers have wanted to build direct relationships with consumers, and potentially using marketing dollars to offer discounts directly to them. Of course, what retailer wouldn't want to excite customers by rolling back the price when they present a mobile barcode for an ice cream bar?
But those same marketing dollars today are often earmarked for convenience store retailers. So what if this paradigm shift occurs? Are c-stores written out of the equation?
Well, Bakker said that's one scenario. He said that retailers' loyalty programs will play a role now. Those electronic connections to enrolled, loyal customers will be the path CPG companies want. Enon, Ohio-based Speedway's recent acquisition of Hess stores is meaningful in that the loyalty-strong Speedway will be able to expand its footprint beyond the Midwest, allowing for a greater customer base for CPG companies to work with, he said.
For more thoughts on the topic, I reached out to Koupon Media, a Dallas-based outfit that had been making appearances in recent years at industry gatherings like the NACS Show.
Koupon Media services the text messaging and mobile-coupon offers at companies like Dallas-based 7-Eleven; West Des Moines, Iowa-based Kum & Go and Speedway, according to T.J. Person, CEO of Koupon Media.
He said he has definitely seen strong interest in CPG companies wanting a one-stop source to push coupons to customers frequenting all the different channels. To meet that need, Koupon Media is focusing its efforts on being a single resource.
And yet, Person said his company's new focus will be on convenience stores, primarily because c-stores have yet to embrace the level of coupon acceptance that other channels have. That's in part because c-stores have long since opted out of the complexity of paper coupons, and they are in the lower end of the learning curve in adopting mobile-based discounts.
On the subject of marketing dollars bypassing convenience stores, Person said many factors are coming into play. He said he thinks that one of the biggest strategic uses for mobile coupons is to drive sampling. The "marketing development funds" (MDFs) that CPGs budget for this are specific to that task, to a targeted region. In addition, whatever amount his company would get, he'd split a portion of it with the retailer.
The retailer, on the other hand, after negotiating terms with Koupon Media, gains access to that mobile coupon capability and can push its own foodservice specials to its own loyal customers.
"I never want to compete for MDF dollars," Person said. "But these are highly targeted ad buys that help to drive trial in these retailers."
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