Closed Loop Retail Business Process for Targeted Offers
Original Publication Date: 2007-May-23
Included in the Prior Art Database: 2007-May-23
As Retailers and Consumer Products companies seek to increase sales and profits, they are combatting an ever-increasing number of consumer "messages". This has the effect of nullifying traditional advertising and promotion activities. As a result, there is an on-going effort to find new ways to reach the consumers, influence their buying decision, assure brand loyalty, and measure the effectiveness of promotions. One of the techniques being widely adopted is "Targeted Offers", where a particular promotion is offered only to a carefully selected group of people. The purpose of the selection is to try to send the promotion only to those people likely to respond to it, and likely to make a long-term brand loyalty decision based on their product experience. As the targeting becomes more precise, the number of selections and promotions being handled by retailers is growing dramatically. This paper outlines a closed-loop approach to selecting, promoting, redeeming, and evaluating targeted offers to consumers. Using this technique, retailers will be able to increase the delivery of targeted offers, while at the same time maximizing the long-term profitability of the promotion process.