ATM Machines Expand Coupons to Packaged-Goods Marketers

EFT Promotions Inc. has expanded its successful couponing program using automatic teller machines to include packaged-goods clients. The company is now in the process of pitching the concept to potential customers and adding markets through expanded contracts with banks as well as grocery stores.EFT began working nearly three years ago with banks in several markets to attach coupons onto ATM receipts, says Pete Severens, president of the Atlanta-based firm. The format consists of a two-sided coupon using three colors on the front and one color on the back that prints out below the ATM receipt. A perforation makes it easy to detach and use.Since that program began, the firm has concentrated on such categories as automobile after-care, quick oil-change stores, fast food, hair-cutting and other service-oriented companies. Now, Severens says, the time is ripe to expand into packaged-goods markets."The potential for packaged-goods marketers is great, because banks are expanding their ATM locations into malls, grocery stores, discount stores and other locations close to the point-of-sale," he explains. "What better opportunity to reach the consumer with a cents-off coupon than when she is withdrawing money in a store where she intends to immediately use the money to buy groceries?"Although the firm primarily has contracts with banks, EFT also is talking with retail stores directly. Its first client will be King Super Markets in Denver, where 60 stores will have the coupons added to its ATMs.The company currently has about 2,500 ATMs nationwide offering 15 million coupons per month in about 25 markets, Severens says. During the first quarter of 1995, at least three more markets -- Atlanta, Denver and Des Moines, Iowa -- are expected to be added. As many as five more are currently on tap to be added in the second quarter, according to a company spokeswoman.Since EFT's experience comes from service firms, it has signed on Response Media Products Inc. of Atlanta, to help it reach national product marketers. RMP has worked with a variety of major companies on couponing and sampling promotions, giving them the experience that EFT lacked, Severens says. "They approached us with the idea of using their entry to interest these manufacturers, and it made perfect sense."The interest has been high, says Gail Altman, RMP's account executive for the promotion. "We began promoting the concept in November, which wasn't a good time to try to grab marketers' attention," she admits. "But since the first of the year, we've been receiving a lot of calls asking for information. We believe all we'll need is one player in the packaged-goods field to see that it works, and then others will follow."The demographics of ATM users fit well with these marketers' customers, Altman says. EFT's research shows that the average household income of ATM users is $45,000, and more than 66 percent of people aged 18-49 are customers. ATM users also have more disposable income and education. "This provides a unique opportunity because it targets the young demographics who are big customers for these firms," Severens says.The cost for using the ATM service runs about $18 per 1,000 on the minimum order of 100,000 coupons, Altman says. Rates decrease with volume, and various markets and frequencies can be used in pushing the coupons into the market based on the number of impressions desired or the length of the promotion. "It's a very flexible system that can be manipulated to fit the advertiser's need," notes Severens. Altman adds that additional options besides cents-off coupons include 800 numbers for more information or promotional material.Market exclusivity can be provided, and frequency can be staggered with other advertisers to ensure that one person who generates several receipts doesn't receive duplicate coupons.EFT offers an in-house art service to create the artwork. The client simply sends in a UPC, Severens says. Artwork is created and faxed back to the client for approval. "We've tried to make the program as simple as possible for marketers to participate."

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