Peapod to Offer Shoppers Instant Discounts

Internet grocer Peapod is partnering with Concept Shopping to offer shoppers customized savings based on previous purchases.

Customers can take advantage of instant savings on pre-selected items during their online purchases based on their shopping history. Shoppers can click the “Specials” tab on the home page where a specific list of savings will be offered, based on the their profile.

For instance, if people buy items for taco dinners, they may receive a discount on those items or for a related product, such as homemade guacamole mix. The savings will be subtracted when the order is finalized.

The program is slated to launch in late fall. It captures on the growing trend of real-time electronic coupons. The company hopes to build loyalty and increase sales using the new service, Brad Porter, marketing director for Peapod, said.

“A lot of CPG companies are looking to move out of paper,” Porter said. “We are trying to give people a reason why they can save money by shopping online. Electronic coupons are good for our customers. They require no extra effort on their part.”

Concept Shopping, which handles the technology behind the program, also oversees the
arrangement of discount offers by manufacturers. Part of the service will anticipate customer demand for certain products. If a shopper typically buys puppy chow, they might receive a future discount offer for dog food, John Hennessy, vice president of sales and marketing at Concept Shopping, said. The program will also introduce shoppers to new products.

“It’s not just another bunch of offers that may not make sense,” Hennessy said. “It’s very specific. You just buy the product and are automatically rewarded for taking that step.”

Once the program begins, shoppers will receive roughly a dozen offers at any time, he said.

Customers can still use paper coupons to redeem discounts, Porter said. People simply hand the driver their coupons during the delivery and the discount will be reflected on the next purchase, he said. The program, however, removes the hassle of clipping coupons and waiting for the discount, Porter added.

Peapod is a subsidiary of Royal Ahold, and works in with Ahold USA supermarket companies, including Stop & Shop and Giant Food. About 300,000 customers belong to the program.

The company will promote the service on its Web site at http://www.Peapod.com, and through e-mail and direct mail, Porter said.