Target has completed the rollout of the Catalina Marketing couponing program to all of its stores. The retailer began installing Catalina’s color coupon machines at check-out stands last year at this time, and the installed base now number roughly 35,000 units. The coupon program enables Target and suppliers who participate to provide shoppers with relevant offers based on actual purchases.
The Catalina program at Target is noteworthy because it aligns with the retailer’s overarching strategy of personalizing the shopping experience for customers. The way that happens is the coupon system leverages a massive relational database and employs complex behavioral algorithms to quickly execute a market basket analysis and generate a coupon with a high likelihood of relevancy. In its simplest terms, someone who purchases deli meats might be provided with a coupon for bread.
Shoppers who are provided with relevant offers based on their behavior are more likely to redeem the coupons, ensuring a return trip to Target and a sale for the company and participating suppliers. The program must be generating results. In Catalina’s first year of engagement with Target the company was among those who received one of the retailer’s coveted Best of the Bullseye Awards.