Emerging Technologies:
Are we there yet?
Presented by:
David Diamond
David Diamond Associates
Agenda:
1)
2)
3)
4)
5)
Definitions and Terms
Where we want to go
What we need to do to get there
How we implement a shared vision
The real future – what comes next?
Definitions:
• Traditional Paper Coupons: FSI, on-pack, in-pack, etc. – life
in 1995
• Internet print at home coupons: Delivered via the web into a
“controlled” environment and printed at home – redeemed
as a paper coupon
• Digital Coupon: Complete process from set-up through
redemption is digital. No paper manifestation at all
• Traditional Clearing: The process of capturing, counting,
tracking and billing a paper coupon, as a paper coupon
• Electronic Clearing: The process from check stand to
reconciliation executed via POS and other data rather than
hard copy. Can be used for any sort of coupon
An Interesting Twist
• In most technological advances, the technology is
created, and the technology determines the path
the industry takes
• But in our world, most agree what the end-point is,
and what technology is needed, but no one can
agree on how we get there
• To a certain extent, it is like the moon mission in
1961 – we know where we want to go but do not
know how to get there.
The Shared Vision
• Many in the industry share a vision of where we
want couponing to go:
– Fully digital process from program inception
through redemption and reconciliation
– Delivery to consumers on the device of the
consumers choice – most likely a mobile device of
some sort
– Communication to consumers throughout the
process – before shopping, en route, in the store
– Consumer opt-in to avoid privacy issues
– Individually consumer identifiable to avoid fraud
The Shared Vision
• Many agree that the shared vision should include
targeting to the micro level
– Integration with frequent shopper and other
databases
– Segmentation by consumer loyalty
– Value determined to just drive incremental sales or
just stave off disloyalty – consumer-by-consumer
– Delivery via consumer’s preferred method
– Driving volume for retailer and manufacturer
– Maximizing profitability for retailer and
manufacturer
How we get there
• Technology – but not really. Everything we need
exists, we just need to agree on standards, deploy
the technology and use it
• Retailer/Manufacturer cooperation – really. That is
where the issues really lie
– Who is in charge, who is in control?
– Who gets veto power?
– Who owns the customer?
• Retailer/Manufacturer trust – really, really. This is
why progress has been so elusive. It is just not
there. And it is a requirement
• Retailer/Manufacturer Alignment – forget about it.
Alignment
• We all come to conferences and agree that there
needs to be retailer/manufacturer alignment
• But when it comes to coupons, it can never be
achieved, and will never really exist
– Pepsi really wants you to buy Tropicana Orange
Juice – and really does not care where you buy it
– Kroger really wants you to buy Orange Juice at
Kroger – and really does not care which brand
• We need to accept this and move on
understanding that there is not exact alignment
between manufacturers and retailers
• The only way is accommodation and compromise
Moving Forward
• The industry needs to formally agree on a shared
vision and shared implementation plan including
operating standards
• The industry needs to develop approaches which
accommodate both the retailer’s needs and the
manufacturer’s needs, and stop pretending that
they are the same, when they are not
• When those two things are done, the technical
standards will be easy to identify and straightforward to implement
• And then we can start working on the real future
The Real Future
• First, we must get some version of the shared
vision implemented – it is a necessary prologue to
the implementation of further technological
progress
• We cannot jump to the next step – we need to
complete the first step first.
• But once we have a real plan, we can start looking
at the next level of new technology and implement
that on top of the shared vision
The Real Future
• New innovations should include, but will not be
limited to:
– Sophisticated geo-tracking via GPS, linked to
specific messaging
– Self-correcting algorithms, which find programs,
down to the consumer level, which are not working
and adjust on the fly
– Database integration, which integrates behavioral
and attitudinal data to better understand individuals
– Integration of new touch points and new devices
– Integration of media, joining advertising and
promotion, once and for all
The Real Future
• The shared vision is ambitious, and difficult
• But it is achievable
• And it not only provides a giant step forward for
the industry
• But it also provides a great platform for tons of
incremental innovation
Thank You
• David Diamond – david@ddiamondassociates.com