Ahold Delhaize USA has announced the launch a new software tool that can alert shoppers to temporary price promotions digitally, with a goal of driving incremental store trips, larger shopping baskets and more effective promotions with brands.
The new capability comes through a partnership with Mountain View, Calif.-based software company Quotient and represents the initial launch of the company’s “amplification” tool as part of its Retailer Performance Media platform. Quotient, formerly known as coupons.com, combines point-of-sale and customer loyalty program data with weekly retailer sales promotions to deliver real-time messaging to shoppers and leverages custom creative media from participating brands.
Ahold USA’s retail stores are launching the program through AD Retail Media, the retail media platform of Peapod Digital Labs, its e-commerce and commercial engine.
Quotient officials said the tool can help brands spend marketing funds more efficiently and retailers optimize the effectiveness of promotions by delivering messages to shoppers while they shop or plan to shop online, addressing the issue of the hundreds of weekly promotional offers that are available at stores but overlooked by shoppers. According to Quotient, only 10% of weekly temporary price reductions (TPRs) are visible to consumers through retailers’ weekly circular communication.
“Our new promotion amplification tool provides consumers with increased access to savings, delivering more value at a time when many need it most. Since temporary price reductions will be more easily accessible digitally, consumers can plan purchases better as they continue to gravitate toward a new, mixed mode of shopping—both in-store and online,” Steven Boal, CEO and founder of Quotient, said in a statement. “We’re excited to bring to market such a valuable new tool, building on our successful Retailer Performance Media Platform and expanding it to address evolving consumer needs.”
Quotient said it has filed for a patent for its amplification tool.
For Ahold Delhaize, the tool represents a new way to capture sales—and potentially, a greater share of CPG marketing dollars—that are following the migration of shoppers to the digital channel.
“As we think about serving omnichannel customers, we have an even greater opportunity to connect customers to savings by delivering them through all the channels customers are shopping,” Mark Williamson, vice president and head of media partnerships for Peapod Digital Labs. “As more consumers turn to digital solutions for their shopping needs, this new promotion amplification tool, which we are proud to pioneer with Quotient, enables Ahold Delhaize USA’s brands and their CPG partners to communicate time-sensitive savings to shoppers when and where they are most engaged. This results in a win-win, helping customers save more and boosting incremental sales. It’s a very exciting step forward for the industry and for customers.”
Quotient said CPG advertisers run more than 2,000 TPRs each week to drive in-store sales at grocery retailers. One brand participating in a test of the new tool, PepsiCo, said augmenting on-shelf communication with the additional digital notifications enabled by the tool drove a 6.4% sales lift during its TPR weeks.
"Quotient’s promotion amplification greatly expanded the reach and strength of our existing temporary price reduction weeks, which would normally only be communicated on-shelf,” David Li, associate shopper marketing manager at PepsiCo, said in a statement. “This capability allowed us to reach shoppers digitally and notify them of an existing sale when the product might not have made the weekly ad or email. This was an effective combination of marketing and trade plans to drive a 6.4% sales lift.”
Quotient said the promotion amplification tool aims to drive omnichannel awareness of all TPRs through automated and measurable digital media triggered when the promotion is active. This, in turn, generates incremental store trips and increased basket sizes. The new offering provides incremental benefits to advertisers and retailers alike. For advertisers, it increases the reach of their TPRs to larger audiences that are targeted through Quotient’s exclusive consumer sales and purchase intent data. For retailers that partner with Quotient, promotion amplification provides an exclusive capability to offer advertisers a more effective and efficient way to drive sales through TPRs.