Measurability is the Key, and We're Holding It

Today's issue of CPGmatters featured an article on how coupon measurement is tricky business, given all of the other parameters that go into an individual's purchase decision. While pure redemption is one factor, there's a lot more required to truly gauge the effectiveness of a campaign over the short and long term.

Jonathan Marek, senior vice president, Applied Predictive Technologies (APT), San Francisco, said, “Whether at the market, store or individual consumer level, we believe it is extremely important to get a read on the incremental attributable impact of a coupon. Have I really increased sales? Is my reading affected by lots of noise from factors like competitive activity, weather, changes in season or changes in concept?

“Retailing is a noisy environment in which sales can go up and down 20-30% everyday. Coupon effect is tougher to read in a tight economy because consumers spend less money. To really know what would have happened had you not done the coupon requires a test-and-control methodology,” added Marek, who went to describe that retailers and CPG are often confused between coupon redemption and true incremental impact.

This is one of the areas where Modiv's solutions truly shine. All of our products have built-in controls (users vs. non-users, plus stores with solutions and those in the banner that don't have them). Additionally, since we're using loyaltyIDs to track purchase behavior, for Modiv Shopper users we can accurately show lift for redeemers, as well as those who saw a promotion but did not redeem it.
As the fiscal situation drives more advertisers and brands toward true ROI measurement of promotions, there's no better fit than a campaign on Modiv's network.