Produce promotions and couponing have always been a challenge for grocery retailers. Produce uses a large number of Product Look-Up (PLU) codes, which are often assigned by each individual retailer, unlike Universal Product Codes (UPCs), which are standardized across all retailers. Consequently, PLUs can be hard to track and assign to specific promotions. When a promotion mixes both UPCs and PLUs, the challenge is even greater.
AI (8112) Universal Coupons (UCs) are a flexible coupon technology that allows the issuer (i.e the party creating the campaign, whether it is a CPG, brand, or retailer) to load a large number of items into a single offer, and mix both UPCs and PLUs. This capability can support produce couponing, as well as healthcare benefits like food prescriptions (FoodRx). Through FoodRx, healthcare providers prescribe fresh produce as part of care regimens for diet-impacted, chronic conditions like diabetes and obesity.
In the past, nData, in partnership with LaGree’s Food Stores in Colorado, successfully tested the use of AI (8112) UCs for FoodRx, and recently tested consumer acceptance of a produce discount coupon. In both approaches, nData took the catalog of UPCs and PLUs for LaGree’s entire produce department, over 1000 items, and filtered out all non-fresh produce, such as refrigerated salad dressing and processed fruits. The final item file for the promotion consisted of about 800 fresh produce items.
Customers captured the AI (8112) UC offer in-store, using the Coupon24 digital wallet, and received a $5 discount on the purchase of $10 of fresh produce. The only promotion was three flyers – one posted at each end and the middle of the produce department. The promotion ran for two weeks. There were 48 clips and 31 redemptions, for a 64% clip-to-redeem ratio, with an average of 4.5 produce units per redemption. An impressive result, especially with very limited promotion. The test confirmed shopper willingness to act on impulse, using AI (8112) UCs in-aisle for discounts.
When asked about the Promotion, Megan LaGree, Co-Founder of LaGree’s Food Stores said, “We are excited about using 8112 technology for produce specials and Food-As-Medicine programs.
*AI: Application Identifier is a GS1 identification number.
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