AN OVERVIEW OF CRS (Coupon Redemption Service)
Coupon Redemption Service is kind of a marketing program (promotion strategy) for retailers, and it is a business oriented service. The retail stakeholder is RMA i.e. Retail Merchants Association, and it is a service for anyone with a retail business e.g. convenient stores, pharma stores, all kind of general stores, & off licenses enrolled with us (RMA/MBBP) when accepting the coupons.
Similar to different marketing strategies that are used in the retail environment for promotion and marketing of products e.g. buy one get one free, a very common marketing strategy. CRS is one of a marketing strategy used in Canada for the retailers. It is a Coupon based marketing program, and it creates an environment of trust between the retailers and the service providers i.e. RMA/MBBP. RMA or Retail Merchants Association plays a pivotal role in the smooth running of the Coupon Redemption service, as profits are generated through the handling amount/charges. Also saves cash handling for the retailers, and profits are generated smoothly every month, once the coupon are redeemed and its value is paid to the retailers.
HOW IT WORKS
It works in a very simple way, as it is the task of manufacturers to make sure that coupons floats into the general public either through magazine, newspaper, Mall, or through marketing material like pamphlets. Once it is with the general public they will go to the retailers for redemption of the coupons, the retailers will accept it only if they are registered to accept coupons, they will send it to the service provider i.e. RMA/MBBP, and we will send it to the manufacturer e.g. Mountain Dew (a drinking product). The manufacturer will than send the amount of the purchase to the retailer, as well as the retailer will get profit from handling of the coupon. The handling amount is distributed between the retailers and the service providers.
The retailers will also get permanent customers, their customers will improve, and they will have more profitability than regular sales. It can also be termed as something different from regular sales, as it is a marketing strategy as well to promote products as well as increasing the foot traffic. The boost in foot traffic is directly proportional to the increase in sales. Foot traffic is a vital element in understanding the profits from coupons, and once the flow is active a Coupon life cycle is in flow.
The handling allowance due to this rotation is given by the manufacturer as the retailer’s interest is generated with the manufacturer and they are taking benefits just by registering with MBBP/RMA website and accepting the coupons.
Coupons can be for any product i.e. Pharma products, shampoos, beauty products, shaving products, and some products related to electronics & electricals. The constant circulation of Coupon in the Coupon program will give the handling allowance on face value. There are big chain of companies whose coupons RMA/MBBP deals in, and the main point of interaction here are not the customers, but the retailers. These retailers are convenience stores, general off incenses, and other small retailers who have a consistent customer base, and want their sales to boost.
REGISTERING FOR THE COUPONS (EXECUTION & ENROLLMENT)
The retailers just need to download the form from the RMA website in order to get registered, and they will send it to the service providers. They will then be registered to accept coupons from the customers & hence will be earning profits based on the coupon handling and the quantity of coupons coming in to the retailers. The form just includes basic information regarding the store location, the signature of retailer, and mentioning the number of stores, and other important information listed in the form. Once the form gets to us (MBBP/RMA) we will enroll the retailer to receive coupons, and get profits on their sales volume, as it is a boost in sales due to increase in foot traffic.
Coupon redemption service, a famous service for retailers, & customers as profitability is something everyone wants to attain in the retail business. The role of retail stores is to just get enrolled with the program, accept the coupons, and move ahead every time the coupons get to the retailers for redemption.