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Coupon Data Pool

Jan Somers
CEO GS1 Belgium & Luxembourg
Kurt Herregodts
Project manager Coupon Data Pool
Agenda

        •    How is it going?
        •    Results survey
        •    Status GDSN - CDB
        •    GS1 Coupon Data Pool – concept
        •    Main innovations
        •    Benefits for retailers and coupon issuers
        •    Project milestones
        •    Costs
        •    Conclusions & questions



                                                              2
© 2010 GS1
How is it going?

        • Slower progress than expected
        • But we are on track with the GS1 community
          (see GDSN)
        • A project for GS1 members and by GS1
          members
        • Main objective: win-win for everyone
        • More efficiency and less costly as today
        • We must better manage our data
        • Internal quality assessment takes place
        • Yes it is a change


                                                           3
© 2010 GS1
Coupon Data Pool



                 GDSN


              New coupons in
             Coupon Data Pool

                 Clearing



                                           4
© 2010 GS1
Coupon Data Pool



               GDSN


             New coupons in
              Coupon DP



              Clearing



                                         5
© 2010 GS1
Results survey


             Out of 259 potential coupon issuers 199 filled out the survey




                                                                             6
© 2010 GS1
Results survey (2)
                Present in GDSN ?




                                7
© 2010 GS1
Results survey (3)
             Top 70 coupon issuers




                                 8
© 2010 GS1
GDSN – Central Data Bank

                                            # companies in 2010
             90

             80

             70

             60

             50

             40

             30

             20

             10

             0
                  Feb    Dec    Jan   Feb   Mrt   Apr   May   Jun   Jul   Aug   Sep   Oct   Nov   Dec
                  2009   2009




                                                                                                        9
© 2010 GS1
GDSN – Central Data Bank

             16000

             14000

             12000

             10000

              8000

              6000                   Unique Base Items
                                     Total Base Items
              4000

              2000

                 0




                                                         10
© 2010 GS1
The concept




                       11
© 2010 GS1
Main innovations


       • Seamless integration of Coupon Data Pool with GDSN
         via CDB Data pool
           Automated link of GTIN (EAN-13 and 8) with the coupon
           single-sign-on for coupon issuers and retailers via web-
            user-interface
           increased data quality and consistency in both data
            pools (CDB and Coupon Data Pool)
       • Flexible features for management of Coupon Families
         (GTIN-families, e.g. for one brand): simplifies handling
         and increases data quality significantly



                                                                       12
© 2010 GS1
Main innovations

       • Fraud prevention, i.e. consumers can no longer present
         a coupon without having purchased the product

       • As a consequence, misredemption drops (- 4 %)

       • Difference with current clearing in Belgium &
         Luxembourg:
          link between GTIN and coupon
          no more paper clearing




                                                                  13
© 2010 GS1
Coupon types supported



       • 50 Cents off when buying one or more products out of a range
         (e.g. some products or whole brand with several GTINs)
       • Buy 1 or more products and get 1 free
       • Product for free (100% discount for a specific product)
       • Buy 2 small/cheap packages or 1 large/expensive package and
         get 2 € off
       • Buy 5 products for at least 8 EUR and get 4 EUR off
       • Buy 1 product for at least 4 EUR and get 1 EUR off




                                                                        14
© 2010 GS1
Campaign-promotion-coupon




                                         15
© 2010 GS1
Campaign



        • Can consist of different promotions, especially when
          different face values are used within a campaign
        • Budget can be managed on campaign level




© 2010 GS1
Promotion



        • Can consist of different coupons
        • Budget can be managed at promotion level
        • All coupons of a promotion have the same face value




© 2010 GS1
Coupon



        • One coupon can only belong to one promotion
        • Coupon code is assigned to one coupon




© 2010 GS1
Example


                                                             Campaign
                                                               Reckitt
                                                            Powerbrands
                                                            Budget: € 50K




                                   Promotion                                       Promotion
                                     Calgon                                          Finish
                             01.01.2011-30.06.2011                          01.04.2011 – 30.06.2011
                                2 products € 5 off                              1 product € 2 off
                                   Budget 30K                                     Budget 20K
                     Powder 950g – gel 750 ml – tabs 45 pieces                  Tabs – 90 pieces




                    Coupon                          Coupon                         Coupon
                 9830001015007                   9830001025006                 9830001032004
               Medium: Magazine A              Medium: Magazine B           Medium: coupon on pack
                   01.01.2011                      01.01.2011                    01.04.2011
             Number of coupons: 100K          Number of coupons:70K         Number of coupons: 20K




© 2010 GS1
Benefits for retailers

       • Eliminated costs of paper coupon handling; audit proof
         processes
       • Accelerated check-out process handling
       • Coupon market transparency (retailers can see all
         current coupons on the market including coupon
         attributes)
       • Eliminated invoice discrepancies through high data
         accuracy
       • Accelerated reimbursement cycle
       • Smart data quality tools validates coupons- and
         master data for an efficient check-out handling
       • Meal voucher
                                                                  20
© 2010 GS1
Benefits for coupon issuers

       •     Elimination of redemption errors
       •     Minimized coupon fraud
       •     Transparency through redemptions reports
       •     Easy Promotion Management through Coupon Family
             Management Tool
       •     Support for bilateral coupon campaigns
       •     Faster and enhanced redemption reports on a weekly
             basis
       •     Drop in misredemption (-4 % = 6 MiO coupons)
       •     Less costs


                                                                  21
© 2010 GS1
Drop in misredemption

             Misredemption = using the coupon without the product
             bought
                 If 150.000.000 coupons on Belgian market
                 1 % misredemption
                 = 1.500.000 coupons
                 x € 0.80/coupon (*)
                 = 1.200.000 € /200 coupon issuers
                 = 6000 €
             However, misredemption is estimated at 4%/year …


       * average face value source HighCo Data


                                                                     22
© 2010 GS1
Coupon Data Pool



                 GDSN

              New coupons in
             Coupon Data Pool

                 Clearing



                                           23
© 2010 GS1
Project milestones (1)

       • As of January 1st: no more coupon issuer numbers via
         HighCo Data
       • February 1st: information session
       • February 1st – 28th: collect coupon issuer master data
         and sample existing promotions
       • March 1st - March 15th: upload coupon issuer master
         data and sample existing promotions in test
         environment and feedback to coupon issuers
       • May: labo testing all scenarios
       • Latest April 15th : test HighCo Extranet interface
       • March 14th – 18th: training GS1 staff

                                                                  24
© 2010 GS1
Project milestones (2)

       PHASE I – PILOT
       • March: define pilot coupon issuers (5-10)
       • April: define pilot Delhaize and Carrefour store
       • Before April 15th : all products (coupon related) of pilot
         coupon issuers on GDSN/CDB
       • May 2nd – 6th : 1 day training (TBC)
       • May 23rd – 31st : final upload existing promotions and
         validation in live environment
       • June 1st onwards:
             • possibility to create new promotions in Coupon Data Pool
             • automatic link to HighCo Data
       • June 15th : start pilot in 2 stores (one Delhaize/one
         Carrefour)                                                       25
© 2010 GS1
Project milestones (3)

       PHASE II – ALL COUPON ISSUERS
       • Before May 31st : all supplier products on GDSN/CDB
       • June - July: training
       • As from 1/7: all coupon issuers can connect to Coupon
         Data Pool
       • July 18th - 31st: upload existing promotions in live
         environment
       • August 1st onwards: create new promotions in
         Coupon Data Pool
       • August 16th: roll out in 2 pilot stores (one Delhaize &
         one Carrefour)

                                                                   26
© 2010 GS1
Project milestones (4)

       PHASE III – PRE LIVE
       • Testing of
          • GS1 backoffice (invoicing procedures)
          • Clearing documents/related procedures
          • Error handling procedures
          • Redemption data of Delhaize
          • Redemption data of Carrefour (from December)
       • Timing: as of August 16th




                                                           27
© 2010 GS1
Coupon Data Pool



              GDSN

             New coupos in
              Coupon DP



              Clearing



                                            28
© 2010 GS1
Project milestones (5)

       PHASE IV - LIVE

                  • The manual clearing with HighCo Data
                    stops
                  • The Coupon Data Pool takes over
                  • For each coupon scanned at the till,
                    GS1 will now invoice
                  • Timing: depends largely on retailers
                    timing



                                                           29
© 2010 GS1
Important to know


       • Our common objective: in phase 1 to 3, we want to
         test and improve the system until it is perfect
       • There is no way back
       • In phase 1 tot 3: clearing will be done by HighCo Data
         so no interruption of business
       • As from phase 2: all new campaigns have to be
         created via the Coupon Data Pool




                                                                  30
© 2010 GS1
Invoicing as of phase 2

       • Once connection made to Coupon Data Pool (phase 2
         - as of July 1st, 2011), a flat fee will be invoiced
       • No fee for each scanned coupon in phase 1 to 3
       • Start up fee = once
       • Conditio sine qua non: be a member of GS1 Belgilux

                 Turnover in 000 €    Flat fee 2011 in €   One time start-up fee in €
                     < 2500 €                170                     670
                from 2500 to <6000           200                     805
               from 6000 to <12000           255                     1005
              from 12000 to < 25000          305                     1210
              from 25000 to <125000          385                     1545
             from 125000 to <750000          505                     2000
                     > 750000                590                     2345
                                                                                        31
© 2010 GS1
Invoicing phase 4

       • Once Live – phase 4 – retailers do not send their
         coupons anymore to HighCo and will implement the
         Coupon Data Pool for their integrated supermarkets
       • Fee for each scanned coupon = 2.4 Eurocent to be
         paid to GS1 Coupon Data Pool
       • Flat fee to be paid by the coupon issuer to the retailer :
         tbd but around 5 Eurocent
       • Board of GS1 requested volume reduction, so your fee
         for each coupon scanned in phase 4 could drop to 1.7
         Eurocent


              We think we are competitive!
                                                                      32
© 2010 GS1
Why phased approach?



       •     Test the system and its procedures
       •     Give everyone sufficient time to be in time
       •     Allow you, the retailers and us to test
       •     HOWEVER the retailer cannot test if
             the data is not in the Coupon Data Pool




                                                             33
© 2010 GS1
Phase 1 to 3

       • Coupons scanned at the till


             100

              90

              80

              70

              60
                                                             %
              50

              40

              30

              20

              10

               0
                   June    August      September   October



                                                                   34
© 2010 GS1
How to get started?

       •     Be in time
       •     Prepare your company
       •     Make multidisciplinary teams
       •     You are in a GDSN Data pool?
             • Check if your GTINs for target market Belgium and Luxembourg are
               up to date for couponing
       • You are not in a GDSN Data pool?
         • Start immediately to enter your data in the GS1 Belgilux CDB or
              another GDSN Data pool
             • Our experience: takes approx. 3 months before you are live (if
               machine-to-machine communication), 1 week (if input via web-
               interface)



                                                                                  35
© 2010 GS1
How to get started?

       • Update your staff data on GS1 website!
          • How ? www.gs1belu.org       member login




                                                          36
© 2010 GS1
FAQ?

       • Do all coupons from 1/8/2011 need to be created in the
         Coupon DP YES
       • Can I make a coupon from 1/8/2011 without being
         connected to GDSN NO
       • Will other clearing houses get the coupon data once the
         coupon has been created in the Coupon DP YES, we
         will feed the extranet of HighCo
       • Will all coupons be redeemed by the Coupon DP? NO
         only Carrefour and Delhaize for the moment and as
         from the live phase



                                                                   37
© 2010 GS1
CONCLUSION

 DASHBOARD ALL COUPON ISSUERS

                             COLLECT MASTER DATA AND
    1        FEBRUARY 1-28
                             SAMPLE EXISTING COUPONS
                             ALL COUPON ISSUERS
    2        MAY 31
                             PRODUCTS ON GDSN

    3        JUNE-JULY       TRAINING

                             UPLOAD EXISTING COUPONS IN
    4        JULY 18-31
                             COUPON DATA POOL
                             CREATE NEW PROMOTIONS IN
    5        AUGUST 1
                             COUPON DATA POOL

    6        AUGUST 16       ROLL-OUT

                                                          38
© 2010 GS1
Contact Details
GS1 Belgium & Luxembourg
Koningsstraat 29 Rue Royale
1000 Brussel/Bruxelles
T + 32 2 229 18 80
F + 32 2 217 43 47
W www.gs1belu.org
E info@gs1belu.org

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01302011 kh coupon data pool gs1 belgilux info session final

  • 1. Coupon Data Pool Jan Somers CEO GS1 Belgium & Luxembourg Kurt Herregodts Project manager Coupon Data Pool
  • 2. Agenda • How is it going? • Results survey • Status GDSN - CDB • GS1 Coupon Data Pool – concept • Main innovations • Benefits for retailers and coupon issuers • Project milestones • Costs • Conclusions & questions 2 © 2010 GS1
  • 3. How is it going? • Slower progress than expected • But we are on track with the GS1 community (see GDSN) • A project for GS1 members and by GS1 members • Main objective: win-win for everyone • More efficiency and less costly as today • We must better manage our data • Internal quality assessment takes place • Yes it is a change 3 © 2010 GS1
  • 4. Coupon Data Pool GDSN New coupons in Coupon Data Pool Clearing 4 © 2010 GS1
  • 5. Coupon Data Pool GDSN New coupons in Coupon DP Clearing 5 © 2010 GS1
  • 6. Results survey Out of 259 potential coupon issuers 199 filled out the survey 6 © 2010 GS1
  • 7. Results survey (2) Present in GDSN ? 7 © 2010 GS1
  • 8. Results survey (3) Top 70 coupon issuers 8 © 2010 GS1
  • 9. GDSN – Central Data Bank # companies in 2010 90 80 70 60 50 40 30 20 10 0 Feb Dec Jan Feb Mrt Apr May Jun Jul Aug Sep Oct Nov Dec 2009 2009 9 © 2010 GS1
  • 10. GDSN – Central Data Bank 16000 14000 12000 10000 8000 6000 Unique Base Items Total Base Items 4000 2000 0 10 © 2010 GS1
  • 11. The concept 11 © 2010 GS1
  • 12. Main innovations • Seamless integration of Coupon Data Pool with GDSN via CDB Data pool  Automated link of GTIN (EAN-13 and 8) with the coupon  single-sign-on for coupon issuers and retailers via web- user-interface  increased data quality and consistency in both data pools (CDB and Coupon Data Pool) • Flexible features for management of Coupon Families (GTIN-families, e.g. for one brand): simplifies handling and increases data quality significantly 12 © 2010 GS1
  • 13. Main innovations • Fraud prevention, i.e. consumers can no longer present a coupon without having purchased the product • As a consequence, misredemption drops (- 4 %) • Difference with current clearing in Belgium & Luxembourg:  link between GTIN and coupon  no more paper clearing 13 © 2010 GS1
  • 14. Coupon types supported • 50 Cents off when buying one or more products out of a range (e.g. some products or whole brand with several GTINs) • Buy 1 or more products and get 1 free • Product for free (100% discount for a specific product) • Buy 2 small/cheap packages or 1 large/expensive package and get 2 € off • Buy 5 products for at least 8 EUR and get 4 EUR off • Buy 1 product for at least 4 EUR and get 1 EUR off 14 © 2010 GS1
  • 15. Campaign-promotion-coupon 15 © 2010 GS1
  • 16. Campaign • Can consist of different promotions, especially when different face values are used within a campaign • Budget can be managed on campaign level © 2010 GS1
  • 17. Promotion • Can consist of different coupons • Budget can be managed at promotion level • All coupons of a promotion have the same face value © 2010 GS1
  • 18. Coupon • One coupon can only belong to one promotion • Coupon code is assigned to one coupon © 2010 GS1
  • 19. Example Campaign Reckitt Powerbrands Budget: € 50K Promotion Promotion Calgon Finish 01.01.2011-30.06.2011 01.04.2011 – 30.06.2011 2 products € 5 off 1 product € 2 off Budget 30K Budget 20K Powder 950g – gel 750 ml – tabs 45 pieces Tabs – 90 pieces Coupon Coupon Coupon 9830001015007 9830001025006 9830001032004 Medium: Magazine A Medium: Magazine B Medium: coupon on pack 01.01.2011 01.01.2011 01.04.2011 Number of coupons: 100K Number of coupons:70K Number of coupons: 20K © 2010 GS1
  • 20. Benefits for retailers • Eliminated costs of paper coupon handling; audit proof processes • Accelerated check-out process handling • Coupon market transparency (retailers can see all current coupons on the market including coupon attributes) • Eliminated invoice discrepancies through high data accuracy • Accelerated reimbursement cycle • Smart data quality tools validates coupons- and master data for an efficient check-out handling • Meal voucher 20 © 2010 GS1
  • 21. Benefits for coupon issuers • Elimination of redemption errors • Minimized coupon fraud • Transparency through redemptions reports • Easy Promotion Management through Coupon Family Management Tool • Support for bilateral coupon campaigns • Faster and enhanced redemption reports on a weekly basis • Drop in misredemption (-4 % = 6 MiO coupons) • Less costs 21 © 2010 GS1
  • 22. Drop in misredemption Misredemption = using the coupon without the product bought If 150.000.000 coupons on Belgian market 1 % misredemption = 1.500.000 coupons x € 0.80/coupon (*) = 1.200.000 € /200 coupon issuers = 6000 € However, misredemption is estimated at 4%/year … * average face value source HighCo Data 22 © 2010 GS1
  • 23. Coupon Data Pool GDSN New coupons in Coupon Data Pool Clearing 23 © 2010 GS1
  • 24. Project milestones (1) • As of January 1st: no more coupon issuer numbers via HighCo Data • February 1st: information session • February 1st – 28th: collect coupon issuer master data and sample existing promotions • March 1st - March 15th: upload coupon issuer master data and sample existing promotions in test environment and feedback to coupon issuers • May: labo testing all scenarios • Latest April 15th : test HighCo Extranet interface • March 14th – 18th: training GS1 staff 24 © 2010 GS1
  • 25. Project milestones (2) PHASE I – PILOT • March: define pilot coupon issuers (5-10) • April: define pilot Delhaize and Carrefour store • Before April 15th : all products (coupon related) of pilot coupon issuers on GDSN/CDB • May 2nd – 6th : 1 day training (TBC) • May 23rd – 31st : final upload existing promotions and validation in live environment • June 1st onwards: • possibility to create new promotions in Coupon Data Pool • automatic link to HighCo Data • June 15th : start pilot in 2 stores (one Delhaize/one Carrefour) 25 © 2010 GS1
  • 26. Project milestones (3) PHASE II – ALL COUPON ISSUERS • Before May 31st : all supplier products on GDSN/CDB • June - July: training • As from 1/7: all coupon issuers can connect to Coupon Data Pool • July 18th - 31st: upload existing promotions in live environment • August 1st onwards: create new promotions in Coupon Data Pool • August 16th: roll out in 2 pilot stores (one Delhaize & one Carrefour) 26 © 2010 GS1
  • 27. Project milestones (4) PHASE III – PRE LIVE • Testing of • GS1 backoffice (invoicing procedures) • Clearing documents/related procedures • Error handling procedures • Redemption data of Delhaize • Redemption data of Carrefour (from December) • Timing: as of August 16th 27 © 2010 GS1
  • 28. Coupon Data Pool GDSN New coupos in Coupon DP Clearing 28 © 2010 GS1
  • 29. Project milestones (5) PHASE IV - LIVE • The manual clearing with HighCo Data stops • The Coupon Data Pool takes over • For each coupon scanned at the till, GS1 will now invoice • Timing: depends largely on retailers timing 29 © 2010 GS1
  • 30. Important to know • Our common objective: in phase 1 to 3, we want to test and improve the system until it is perfect • There is no way back • In phase 1 tot 3: clearing will be done by HighCo Data so no interruption of business • As from phase 2: all new campaigns have to be created via the Coupon Data Pool 30 © 2010 GS1
  • 31. Invoicing as of phase 2 • Once connection made to Coupon Data Pool (phase 2 - as of July 1st, 2011), a flat fee will be invoiced • No fee for each scanned coupon in phase 1 to 3 • Start up fee = once • Conditio sine qua non: be a member of GS1 Belgilux Turnover in 000 € Flat fee 2011 in € One time start-up fee in € < 2500 € 170 670 from 2500 to <6000 200 805 from 6000 to <12000 255 1005 from 12000 to < 25000 305 1210 from 25000 to <125000 385 1545 from 125000 to <750000 505 2000 > 750000 590 2345 31 © 2010 GS1
  • 32. Invoicing phase 4 • Once Live – phase 4 – retailers do not send their coupons anymore to HighCo and will implement the Coupon Data Pool for their integrated supermarkets • Fee for each scanned coupon = 2.4 Eurocent to be paid to GS1 Coupon Data Pool • Flat fee to be paid by the coupon issuer to the retailer : tbd but around 5 Eurocent • Board of GS1 requested volume reduction, so your fee for each coupon scanned in phase 4 could drop to 1.7 Eurocent We think we are competitive! 32 © 2010 GS1
  • 33. Why phased approach? • Test the system and its procedures • Give everyone sufficient time to be in time • Allow you, the retailers and us to test • HOWEVER the retailer cannot test if the data is not in the Coupon Data Pool 33 © 2010 GS1
  • 34. Phase 1 to 3 • Coupons scanned at the till 100 90 80 70 60 % 50 40 30 20 10 0 June August September October 34 © 2010 GS1
  • 35. How to get started? • Be in time • Prepare your company • Make multidisciplinary teams • You are in a GDSN Data pool? • Check if your GTINs for target market Belgium and Luxembourg are up to date for couponing • You are not in a GDSN Data pool? • Start immediately to enter your data in the GS1 Belgilux CDB or another GDSN Data pool • Our experience: takes approx. 3 months before you are live (if machine-to-machine communication), 1 week (if input via web- interface) 35 © 2010 GS1
  • 36. How to get started? • Update your staff data on GS1 website! • How ? www.gs1belu.org member login 36 © 2010 GS1
  • 37. FAQ? • Do all coupons from 1/8/2011 need to be created in the Coupon DP YES • Can I make a coupon from 1/8/2011 without being connected to GDSN NO • Will other clearing houses get the coupon data once the coupon has been created in the Coupon DP YES, we will feed the extranet of HighCo • Will all coupons be redeemed by the Coupon DP? NO only Carrefour and Delhaize for the moment and as from the live phase 37 © 2010 GS1
  • 38. CONCLUSION DASHBOARD ALL COUPON ISSUERS COLLECT MASTER DATA AND 1 FEBRUARY 1-28 SAMPLE EXISTING COUPONS ALL COUPON ISSUERS 2 MAY 31 PRODUCTS ON GDSN 3 JUNE-JULY TRAINING UPLOAD EXISTING COUPONS IN 4 JULY 18-31 COUPON DATA POOL CREATE NEW PROMOTIONS IN 5 AUGUST 1 COUPON DATA POOL 6 AUGUST 16 ROLL-OUT 38 © 2010 GS1
  • 39. Contact Details GS1 Belgium & Luxembourg Koningsstraat 29 Rue Royale 1000 Brussel/Bruxelles T + 32 2 229 18 80 F + 32 2 217 43 47 W www.gs1belu.org E info@gs1belu.org