INTERNET PRINT AT HOME COUPON VOLUNTARY GUIDELINES

Transcription

1 INTERNET PRINT AT HOME COUPON VOLUNTARY GUIDELINES Produced By Approved By: ACP Board of Directors Joint Industry Coupon Committee April 2014 V 3.0 November 2007 V 2.0 April 2001 V1.0 The ACP Internet Coupon Task Force created the Internet Print at Home Coupon Voluntary Guideline to: To develop and publish a comprehensive guide to Internet coupons, discussing trends, benefits, opportunities, and issues associated with Internet distributed coupons as they apply to consumers, retailers, processors, and manufacturers To provide recommendations and best practices in coupon design and overall program development, execution, and redemption 1

2 INTERNET PRINT AT HOME COUPON VOLUNTARYGUIDELINES V. 3 A P R I L A B O U T T H E A C P Mission & Goals The Association of Coupon Professionals provides manufacturers and retailers with education and valued insights to effectively execute coupon promotions from development through settlement. This is accomplished by providing resources to industry professionals on coupon guidelines, new trends, emerging technologies and best practices including forums for coupon education. ACP Tag Line Helping manufacturers and retailers effectively execute coupon promotions A B O U T G U I D E L I N E D E V E L O P M E N T A N D I N D U S T R Y A P P R O V A LS The ACP is working in collaboration with the leadership of the Joint Industry Coupon Committee (JICC), the Food Marketing Institute (FMI), and Grocery Manufacturers Association (GMA). A leadership committee from these groups was formed to address coupon guidelines. GS1US and Coupon Information Corporation (CIC) are also involved. Prioritization of topics and work delegation is geared toward the association best equipped to accomplish a task. The objective is to address issues topic by topic, seek endorsement from all associations and make available to industry participants. The ACP Coupon Guidelines Committee created and approved these guidelines. The ACP Board of Directors and the Joint Industry Coupon Committee also approved these guidelines. When guidelines are developed there are feedback\ comment\ input loops from the ACP board of directors back to the Guidelines Committee and from The JICC Committee back to the ACP Board of Directors and Coupon Guidelines Committee. This enables representative participation by retailers, manufacturers, coupon processors, vendors and associations, consensus and ultimately endorsement. The guidelines are available to industry participants. Industry participants include retailers, manufacturers, coupon processors and solution providers that directly support retailers or manufacturers. These guidelines should not be made public and or available on website that is not password protected. These guidelines should not be made available to consumers or consumer facing companies. 2

3 The following documents are available Digital Coupon Guidelines Internet Coupon Guidelines Canadian Internet Coupon Guidelines Glossary Lost in Transit Gs1 DataBar, a Practical Guide Coupon History Coupon Design Family Codes with GS1 Databar Examples Self-Checkout & Coupon Redemption Adjustment Reason Codes Overview Being on-line, whether it is a desktop, laptop, tablet, or smartphone, continues to be a significant and growing shift in consumer behavior. Coupons found online also continue to grow exponentially, both printable and digital/mobile. As consumer media consumption evolves and changes marketers need to be cognizant of these shifts and consider delivering coupons in new distribution channels in order to reach their intended audience. 56 percent of U.S. digital media consumers constitute the multi-platform majority Comscore This year, more than half of US adult internet users, or million people, will redeem a digital coupon More than 28% of people who own a mobile device redeemed a coupon in Nearly 70% of mobile coupon users will access coupons via smartphone. emarketer expects the number of people who redeem digital coupons to increase 11.0% this year Shopping is one of the most popular activities for tablet users, and, unsurprisingly, consumers are using tablets to find and redeem coupons, primarily at home. emarketer expects that by 2015, the tablet coupon user audience will be more than twice the size it was in Source: / #VfuA6ZSVOICSpIim.99 3

4 47% of surveyed shoppers collected discounts through coupon websites in % of surveyed shoppers want all coupons to be digital. Coupon sites receive a collective 48 million visitors each month. Source: Digital couponing penetration has increased significantly since 2006 (58.6M vs 31.7M) Digital now represent 58% market reach of Newspaper FSI in 2013 vs 34% in Newspaper only 64.6M 53.5M Online only 3.6M 10.5M Uses Both 28.2M 48.1M Source: Coupons, Inc. Properly executed Internet coupons provide new opportunities for marketers to: Influence new product trial Build direct-to-consumer relationship marketing programs Foster loyalty with consumers Effectively cross-sell and up-sell Enhance targeting Test offers based on consumer segments Integrate online with offline marketing programs The information in this document is intended to help marketers better understand this new paradigm and navigate quickly through the process to create successful Internet coupon programs. * Sources for this section: Forrester Research, emarketer, imediaconnection, Jupiter Research, Doublebase, Mediamark Research ACP Internet Coupon Definitions and Voluntary Guidelines In general, the term Internet Coupons can be defined as anything distributed via the Internet. In this document the focus will be on Print-Controlled Coupons (a.k.a. Internet Print at Home, or Internet Printables). This document will also define digital coupons to help distinguish pure digital coupons, where paper is not required, and print controlled coupons. Internet Print at Home are Print-Controlled Coupons (a.k.a. Internet Printables) are consumer-printable coupons offered in a controlled Web environment, such as the coupon image is not shown on the screen to avoid possible online manipulation, and the number of prints allowed by the consumer are limited. The voluntary guidelines regarding the development of Internet print at home coupons include: No Free/High Value Coupons Most manufacturers do not issue coupons for Free products, and avoid high value coupons. Look for values disproportionately high relative to the price of the item (e.g., 75% or more). 4

5 Customer Identifier(s) Some Internet Coupons may include customer name, identification number (PIN) and/or additional identifier barcode for an added level of security. If applicable, check for these identifiers on the printed coupon. Consistent Offer Value Offer value should be the same if printed in different areas on the coupon. Make sure offer value is consistent in all areas. Expiration Date Check for unusually long expiration periods or dates that appear to have been altered. Valid Internet Coupons often have short expiration periods (e.g., less than 3 months). Legal Language Manufacturers include legal language to protect against fraud and/or misredemption. Words such as coupons are not to be altered, copied, transferred, purchased, sold, etc. are included on most Internet Coupons. Easily Scanable Barcode Proper Internet Coupons use technology that creates clear barcodes. Look for barcodes that are unusually fuzzy or appear to have been altered. Color or Black & White Internet Coupons can appear in color or black & white. Use other guidelines here as your primary reference for recognizing a valid Internet Coupon. Multiple Coupon Prints Look for multiple prints (more than 2) of the exact same coupon. Most valid Internet Coupons provide print controls that limit customers to 1 or 2 prints of a coupon. Obvious Alteration In addition to the tips included here, in general look for coupons that appear to be obviously altered. Common sense goes a long way! While there is no guarantee of the legitimacy of any coupon received by the retailer, including Internet coupons, the ACP recommends these guidelines to help ensure acceptance of, and reimbursement for, valid coupons. The Internet Print at Home Coupons are validated and processed using the existing traditional paper coupon infrastructure. Note: Print coupons distributed or sold online are not Internet coupons. Instead, these are offline coupons originally distributed as FSIs (free standing inserts), Direct Mail, in-store etc., and are wrongly re-distributed or sold through the Internet. In these instances, the marketer did not intend to deliver coupons through the Internet. This transfer of coupons violates most manufacturers coupon policies. 5

6 Digital Coupons - A digital coupon is a coupon that traverses the full coupon process (set-up and communication, discovery, presentation at Point of Sale, validation, and redemption) without the requirement to manifest itself as paper or in other hard-copy form. Note: Traditional industry coupon terms may not have the same meaning when used in regard to Internet coupon promotions. These include: Distribution - The total number of coupons delivered, circulated or made available to the consumer Distribution Potential - The prospective number of coupon offers that can be delivered Reach - The potential number of contacts that can be made Views - A consumer views the promotion on their computer screen Hits - The actual number of text frames and graphics contained on one Web page Impressions - The number of times the offer is actually viewed on a Web page Clicks (click thru) - The number of times a consumer clicked on a promotion image to view or make a selection Selection - The consumer takes the required action to choose a coupon or multiple coupons for printing Prints - The number of coupons printed by consumers Conversion - The consumer takes the coupon(s) to a retailer and purchases the product thereby converting the paper into a cents-off discount at the point of sale Redemption - The coupon was presented at the time the product was purchased Benefits of Internet Print-Controlled Coupons Today, online coupons provide a variety of benefits for both consumers and marketers: Benefits to Consumers Even as technology evolves, consumers continue to respond to savings. Coupons have always provided value in the form of price discounts. Internet print-at-home coupons add further value by giving consumers an innovative, easy and convenient way to save money on a variety of goods and services. The benefits of Internet print-at-home coupons to consumers include: Ease of Use Consumers simply click on the desired coupons and print them. The coupons can be redeemed at any retailer that accepts Internet coupons Convenience Consumers access Internet print-at-home coupons at their leisure and can elect to receive coupons via Relevance Consumers can view and select offers that are targeted to their needs Vibrant Presentation Internet coupon promotions offer interactive, enjoyable, and unique presentations for the consumer Information Rich Consumers can receive more in-depth information about the brand or product by linking to the brand s site or to other Web pages Enhanced Incentives Internet promotions (coupons and other) can offer additional incentive value based on further consumer interaction (e.g. response to questionnaire) 6

7 Benefits to Marketers Both Manufacturers and Retailers One-to-One Marketing Capabilities Internet coupons can be tailored to individual consumer needs. Marketers can learn more about consumer buying habits creating unique one-to-one marketing opportunities Attractive Audience Online coupon users typically have higher household income, larger household size and spend more on many product categories than non-users Potential New Coupon Users The Internet allows marketers to reach a unique audience, some of whom may not be traditional coupon users Reason to Visit Site and Registration Incentive Internet coupons can play a key role in attracting consumers to marketers Web sites, where they can learn about products and services; this helps to create loyalty In-depth Tracking and Measurability Marketers can conduct tests in real time and measure the results on an individual promotion and/or consumer level Additional Consumer Insights With Internet coupons, marketers can measure activity and success by the standard measurements of coupon distribution and redemption; as well as their activities such as views or prints, which indicate levels of interest even if the coupons were never redeemed Relationship Building Marketers have the opportunity to build on-going individual relationships with consumers. Consumers see a benefit to providing information and may be more receptive to the marketer s message Co-Marketing and Integration Opportunities Internet coupons enable tie-in events and promotions between retailer(s) and manufacturer(s). Print-at-home coupons can also be integrated with other online and offline programs Flexibility and Speed The speed and targeting capabilities of Internet coupons allow marketers to quickly execute promotions, including last-minute programs, and react to changing market conditions System Features and Benefits Properly executed Internet print-controlled coupons are made possible by sophisticated technologies and methodologies each providing distinct benefits. These include: System Features Consumer software for individual computer identification System controls to limit prints Uniquely identified coupons No display of coupon image on user s computer screen Printed coupon can include consumer/household name and/or other identifiers Benefits Control and manage coupon access and distribution Manage promotion budgets and ensure proper coupon access Track activity and redemptions to specific consumers Restrict capture of coupon image, coupon alteration, and unauthorized printing Improve personalized relationships, enhance security enforcement messaging to consumers, enable in-store verification 7

8 Challenges of Using the Internet Consumer packaged goods companies, retailers, and others are using the Internet as a method for reaching consumers and meeting marketing objectives. While the Internet has become a viable coupon distribution method, there are certain challenges that need to be considered. Categories of Challenges There are five categories of challenges associated with Internet print-at-home coupons: Copying - photocopying, scanning, reprinting Manipulation - altering values, expiration dates, etc. Unintentional Distribution potential to reach a wider base than planned Print Quality may be compromised by the type of printer used by the consumer Retailer Risk- recognizing legitimate Internet coupons can be a challenge. Copying Individuals can make multiple copies of Internet print-at-home coupons by photocopying, scanning, or reprinting the original coupon. Consumers can also print multiple copies if the manufacturer or its Internet coupon vendor does not have technology in place to limit the number of prints by a consumer. The primary impact of the increased distribution resulting from coupon replication is the potential for unbudgeted redemption liability. In addition, replicated coupons may not have the same print quality as the original offer. Replicated coupons may not move efficiently through the redemption process, resulting in a slow-down at the point-of-sale, reduced checker productivity, and hard-to-handle issues that add costs to the clearing process. Note: Replication of coupon offers is not unique to print-at-home coupons. Other types of coupons such as FSI, direct mail, in-store, magazine, etc. are also susceptible to replication using computer software, color copiers, printers, etc. Manipulation It is important for marketers to select Internet partners (Internet coupon providers, vendors, and agencies) who use state of the art technology and utilize strict controls. If the technology used by an Internet coupon vendor does not have appropriate controls in place, an online coupon can be manipulated. If the promotion is properly set up, the identity of consumers who attempt to alter coupons can be determined through the redemption process and the placement of PIN codes, household identification codes, etc. 8

9 Unintentional Distribution Through , Web-based bulletin boards, and trading clubs all coupons have the potential to reach a wider base than originally planned. As a result, coupons other than those intended by the marketer could be introduced into the marketplace. Unintentional distribution and or changes in design could cause: Increases in promotion liability Inconsistent or incorrect product messaging Deductions resulting from discrepancies between a retailer s expected coupon receivables and a manufacturer s authorized reimbursement Decreased productivity at point of sale Higher cost of clearing due to hard-to-handle issues Print Quality The print quality of an Internet print-at-home coupon can be compromised by the type of printer used by the consumer. Retailer Risk Some retailers are reluctant to redeem these particular coupons since it may be difficult to determine whether it is a manufacturer authorized coupon. There is the potential that the retailer will not be reimbursed by the manufacturer and the retailer absorbs the value of the coupon Industry Initiatives to Manage the Challenges Unique Identifiers - An important security measure for print-at-home coupons is encoded unique identifiers that tie to data in a marketer s database. These unique identifiers enable each coupon to be tracked and linked to a specific consumer. Fraud can be detected through the reconciliation of redemption agent data feeds to the marketer s print-activity database. If a duplicate coupon is detected, it can be flagged. As supplemental data is required for this type of analysis, marketers should contact both the Internet vendor and their redemption agent to understand the additional costs for this level of data and control. Note that detection of replicated coupons occurs after retail redemption Control Coupon Display Proper technology can deter the duplication of offers by not displaying an image of the actual coupon on the home computer monitor. The final coupon should be a product of the print function. Additional time and knowledge are required for consumers to alter a coupon that is not viewable online, acting as a deterrent to fraud Offer Capping Marketers can set predetermined limits on total coupons printed Printing Application Software can control printing, including page orientation, color capabilities, and printing limits. This technology allows marketers and vendors to maintain control over the printing process Data Controls Software application encrypts data between the marketer s server and the consumer s computer making it very difficult to acquire the relayed coupon information. The application also prevents coupon data from being written to the hard drive Registry Identifiers Proper technology can place a unique identifier, which is difficult to delete on a consumer s hard drive or registry. This identifier enables the determination whether a particular computer is responsible for coupon duplication or fraud and can prevent that computer from printing additional coupons Control Print Quality A downloaded printing application ensures that print quality standards are met. The consumer s print dialogue box is disabled during coupon printing giving the marketer control over printing for the specific session. The software also allows for high resolution printing of coupons Bar Code Quality The ability of vendors to accurately control the print quality of the bar code is critical 9

10 Redemption Data Analysis When evaluating Internet coupon vendors, marketers should gain a complete understanding of the control measures provided by the Internet coupon vendor. The GS1 Databar and Internet vendor-specific security codes provide marketers the ability to capture additional data components for analysis. If a coupon carries specific consumer demographic information, the information can be obtained through the manufacturer s agent as part of the redemption process, or the physical coupons can be saved by your agent and forwarded directly to the Internet coupon vendor for additional data capture. In either case, this information can be utilized to determine if fraudulent activity has occurred at the consumer or retail level. Currently, this type of fraud analysis takes place after the coupon has been redeemed by the consumer and processed for payment by the manufacturer or their agent. It is important that the marketer and the Internet coupon vendor agree as to how success is measured. The redemption agent will provide redemption activity based on the number of physical coupons submitted by the retailer(s). In order to provide the marketer with additional redemption analysis the Internet coupon vendor can provide the marketer with the exact number of printed coupons. The marketer can measure redemption activity based on the number of coupons actually printed and redeemed not the number of times the offer was viewed or clicked. The Internet coupon vendor should be able to provide the marketer and/or their redemption agent with these statistics. As supplemental data is required for this type of analysis, manufacturers should contact both the Internet coupon vendor and their redemption agent to understand the additional costs for this level of data and control. Redemption Agent Controls Manufacturer agents provide clients with various services that help minimize exposure to fraudulent coupon activity. The marketer s coupon redemption agent can determine the types of payment controls that should apply to Internet coupon promotions. In most cases, the marketer s existing payment controls are applicable to Internet coupons. If the marketer has not previously offered controllable print coupons via the Internet, it will be important to contact their agent to discuss payment controls prior to distribution. Recommendations for Designing Internet Print-Controlled Coupons All Internet coupons should follow standard coupon design. The following are recommended guidelines for developing an effective Internet coupon: Purchase Requirement - The purchase requirement should be prominently shown and stated in simple, easy to read language. Multiple purchase requirements should be clearly stated and shown next to the face value. Marketers should avoid complicated offers; consumers and retailers prefer simplicity Face Value - should be prominently stated. Avoid Free and High-Value Offers Product Name and Logo The product name should be placed in the center of the coupon and the product logo should be included if space permits Manufacturer Coupon The words "Manufacturer Coupon" should be placed at the top center of the coupon in bold type. Size The coupon should be 6" x 2 ½ " (with a tolerance to 3" x 2 1/16 "). Larger coupons are hard to handle and smaller ones are difficult to read. The coupon should include a dotted line around the perimeter to indicate the need for cutting 10

11 Expiration Date The words expiration date with the actual date xx/xx/xxxx should be printed on every coupon. Always include the month, day, and year the coupon will expire. To limit your promotion liability, avoid issuing a coupon without an expiration date Web Site Name and Logo - The name and URL of the site from which the coupon is distributed should be printed on the coupon Picture of Product A picture of the product should be displayed at the top of the coupon Color The coupon should be displayed in four color. Terms of the Offer The terms of the offer including purchase requirement, quantity, size, value, and should be clear and easy to read GS1 Databar should be placed in the lower right corner of the coupon. The GS1 Databar must be in black on a white background and should be at 100 percent magnification and have sufficient quiet zones on both sides of the bar code. GS1 Coupon DataBar All coupons should have a GS1 Coupon DataBar. This allows for retailers to scan and validate the coupon at point-of-sale. Retailer Clearinghouses and Manufacturer s Agents also scan this code. Specifics of the DataBar format and its components can be found from GS1-US or the ACP. Sample of Legal Copy - Coupons are a contract between the issuer of the coupon and the retailer. Therefore the legal copy on the coupon is intended to protect the issuer from fraud and misredemption. Use the words, void if altered, copied, transferred, purchased, or sold Sample legal copy - Retailer - We will reimburse you the face value of this coupon plus $.08 handling provided it is redeemed by a consumer at the time of purchase on the brand specified. Coupons not properly redeemed will be voided and held. Alteration or reproduction of this coupon is expressly prohibited. May not be sold, transferred, copied, or auctioned. (ANY OTHER USE CONSTITUTES FRAUD). Mail to: ABC Company, 122 Main Street, Anytown, USA Cash value $.001. Void where taxed or restricted. LIMIT ONE COUPON PER ITEM PURCHASED Sample Fraud Notification - Place prominent disclosure on the Web site issuing coupons stating consequences of altering a coupon. Anyone who uses the Internet to commit fraud is subject to prosecution under the Federal Wire Statute. Unauthorized interceptions of Internet communications are prohibited by the Electronic Communication Privacy Act Sample Coupons - Sample coupons are shown below Legal Advice The above suggested legal copy may not contain all the elements needed to properly state the conditions under which the coupon may be used by the consumer or redeemed by the retailer. Manufacturers can refer to an available coupon policy. Consult a legal or expert source before adopting coupon legal copy. Prior to launching an Internet coupon, validation of the coupon bar code value etc. should be verified to ensure it accurately reflects the intent of the offer. Scanning the coupon bar code is highly recommended to validate the offer, prior to authorizing your vendor to release the offer to the public. 11

12 Example of a well-designed Internet Print Controlled Coupon: VOID 12

13 Retailers How do I know whether or not an Internet coupon is valid? This question, according to research done by the Internet Coupon Task Force, is the one most frequently asked by retailers about Internet coupons. Given the facts documented in the overview section of these guidelines, it is important the retailer have information available to attract and retain the continuously growing consumer market utilizing Internet coupons. The purpose of this section is to provide the retailer with a brief listing of criteria to which most legitimately issued Internet coupons will conform. Recommendations for identifying valid Internet coupons: Manufacturer Coupon In an attempt to assist the retailer in identifying Internet coupons, manufacturers place this wording prominently on the front of each of their coupons. Website Logo Research reveals most firms whose business entails issuing Internet coupons will have their company name and logo on the coupon. (See sample coupon on page 10 of these guidelines). Barcode (GS1 DataBar) A barcode should not only be visible on the lower half of the coupon but should also be able to be scanned by the point of sale system. All GS1-US Guidelines should be followed when creating a barcode. If a coupon is not scanning, with the new DataBar, then the value of the coupon must be entered manually. Expiration date As with all coupons an expiration date should be prominently placed on the front of the coupon. Industry norms tend to have short, (i.e. 3-4 months, expiration dates on Internet coupons). Free/High Value coupons It is highly recommended that manufacturers issuing Internet coupons do not do so as free. Free and high value coupons (those for amounts exceeding $5 or amounts disproportionately high relative to the price of the item) have a higher risk of being counterfeited. Multiple coupons Industry leaders assign print limit controls that allow the consumer a set number of attempts at printing the specific coupon offered. Therefore a consumer presenting many of the same coupons at checkout may be cause for concern. Further research There will be times when a cashier is unable to make a decision regarding a coupon s legitimacy. Try to designate someone or have a telephone number available for store staff that requires additional assistance. The Internet Coupon Task Force highly recommends each retailer draft and distribute their policy regarding Internet coupons to their associates. Making staff aware of company policy will go a long way in minimizing inconsistencies in procedures and as a result manufacturer chargebacks and disgruntled customers. While there seems to be no guarantee as to the legitimacy of any coupon received by the retailer, Internet included, it is the belief of the Internet Coupon Task Force that following the guidelines noted above will help to ensure acceptance of and reimbursement for valid coupons. It is important to remember that along with guidelines, common sense goes a long way. 13

14 Summary This is a comprehensive guide to Internet coupons that discusses trends, benefits, opportunities, and challenges as they apply to consumers, retailers, processors, and manufacturers. This guide also presents recommendations for the development of an effective Internet coupon. The majority of U.S. consumers now have access to the Internet. As a result, with respect to couponing, the Internet provides new, viable, efficient, and economical solutions for reaching consumers and impacting their purchasing decisions. In general, the term Internet coupons can be defined as anything distributed via the Internet., this guideline focuses on Print Controlled Coupons (aka Internet Print at home, Internet Printables). Today more controls and better execution of Internet coupons are made possible by sophisticated technologies and methodologies that provide a variety of benefits for both marketers and consumers. At the same time, even though the Internet has become a viable coupon distribution method there are certain challenges that need to be considered. Work closely with your Internet coupon vendor and your redemption agent to ensure your Internet promotions are effectively planned and managed. Follow Best Practices as recommended in this document. Best Practices: Use expiration dates to limit liability Avoid high-value and free offers Select an Internet vendor who has the technology in place to limit coupon prints per consumer Print consumer identification information on the coupon Monitor redemption activity with both your Internet vendor and your redemption agent Limit number of like internet coupon redeemed per shopping trip For further information about Internet Coupons or other coupon related questions, please visit the ACP Web site at or send an to John Morgan, ACP Executive Director at: john.morgan@couponpros.org. There is additional information and resources available at the Coupon Information Center, www , bud@couponinformationcenter.com Key Contact ACP: Association of Coupon Professionals (ACP) John Morgan Executive Director john.morgan@couponpros.org. 14

15 ACP Board Of Directors: Catalina Marketing Corp. Coupons, Inc General Mills Hormel Foods ICSB Inmar Kellogg Company SMS Promotion Eyes Redemption Processing Reps. Unilever Universal Marketing Services Wakefern Food Corp. Winn Dixie Pam Samaniego Jane Michels Jackie Broberg Joanne Walk Naomi Ali Beth Buresh Cheryl Riley Val Stark Mike Sonsthagen Ron Fischer Annette Snyder Earl Ellsworth Sue Knotts Stanley Wadford 15