Measuring coupon usage

In the December edition of CPG Matters, they address the issue of companies investing in coupons, and then being unable to fully understand and analyze what motivates customers to use them.

Bill Bittner, president of BWH Consulting of Mahwah, New Jersey, states “Measuring coupon effect is not done in a vacuum. It’s difficult to sort out the single effect of a coupon. There are so many factors that affect performance, the general economy being the big one today, I don’t know how you isolate.”

To conduct this specific research, APT advocates that tests and controls be set up for retailer-CPG colalboration, by dividing a chain’s loyalty cardholders into many test groups to receive different offers, based on thier prior spending patterns. The controls are samples held out from each of these group to not receive a particular offer.

Then, the researchers must look at both the tests groups and the controls. Find out more about these tests here.