Building loyalty with e-mailed coupons requested by shoppers

As retailers see increased redemptions of coupons distributed online, some are using them to build loyalty throughout e-mailed updates of their latest offers, says Kurt Lohse, CEO of Keycode, distributor of online coupons.

Keycode assists 18 national retail chains in distributing online coupons either directly on Keycode.com or through e-mail campaigns that distribute coupons linked to Keycode.com. Clicking on a coupon link in the e-mail pulls up a current coupon on the Keycode server; consumers print out the coupon for use in a store. Keycode also distributes coded coupons for use in online purchases.

While Keycode reports that its revenue grew more than 40% last year, it also notes that redemption rate of online coupons is also growing, to 30% this year from 20% last year and about 15% in 2002.

To build on that momentum as a way to build loyalty among customers, some retailers are using Keycode’s "coupon wallet" service to provide customers with-mailed updated coupon offers through e-mail. The coupon wallet service lets consumers select the retailers from whom they’ll receive coupons.

Keycode notifies consumers by automated e-mail whenever their chosen retailer offers new coupons, helping the retailers to keep their regular customers up to date with their latest promotions, Lohse says.