OfferArchitect™The new paradigm for digital offer testing

2

Who is RevTrax?RevTrax is the only one-to-one digital promotions company that leverages shopper intelligence to deliver smart coupon offers. Our omnichannel solutions measure the impact of digital marketing on in-store sales by providing actual transaction-based attribution metrics. Marketers deploy RevTrax solutions across devices and channels including display, social, email and search. One solution in particular that is changing the way marketers build digital offers that convert is our proprietary product know as OfferArchitect™.

3

OfferArchitect™ identifies the most impactful coupon offer against a target audience segment by using the Auto Optimizer™ feature. It is a real-time, multivariate-testing platform based upon behavioral economics principles. RevTrax’s heuristic methodology considers all relevant messaging on the coupon itself and the ambient environment including copy, imagery, value, etc. Experiments are planned, tested and operationalized in conjunction with highly credentialed academics from leading marketing research institutions.

What is OfferArchitect™ ?

4

OfferArchitect™ Removes the GuessworkTest and optimize your incentive ideas before deployment. OfferArchitect™ removes the guesswork from digital offer testing and optimization while still encouraging concept ideation by all key stakeholders: Promotions, Sales, Shopper and Field Marketing.

Solves the ProblemConsider the busy holiday season. Both Consumer Packaged Goods (CPG) manufacturers and retailers face enormous pressure to deliver against sales objectives. They must ask themselves, “Have the digital incentives put forward been optimized via proven testing methodologies? Or are they simply someone’s ‘best guess?’” In today’s stiffly competitive market, someone’s best guess simply is not good enough. And in the age of data, if CPGs and retailers have access to more consumer data than ever before, why not use it their advantage when building an offer?

5

MethodologyOfferArchitect™ methodology is ecosystem-inclusive ingesting and analysing quantitative and qualitative input from target consumer to key stakeholders

Generate a portfolio of promotional offers by designing retailer

and manufacturer concepts based on common behavioral

heuristics

Apply statistically significant Data

Science and state-of-the-art Machine

Learning techniques to identify the ideal

test offers

Test against real shoppers across all

digital platforms such as coupon portals, shopper

applications, social media and promotional email

using online engagement, offline

redemption and historical purchase taxonomies

Employ an iterative and adaptive testing

methodology that facilitates ‘best offer’ identification within

days

Collaborate with manufacturers and

their retail customers to review which

offer(s) generate the most appeal, create incremental lift and optimize return-on-

investment

Train, educate and engage Shopper,

Promotion and Trade teams on process

methodology, post-campaign performance,

and future concept development

6

Why OfferArchitect™ ?Only OfferArchitect™ Can:

• Test against national shopper audiences, across retailer types and formats, and across digital channels in a live production environment.

• Deliver hard-attribution metrics, link offline purchase transaction to online shopper engagement, separating those “intending to buy” from those who “actually bought.”

• Provide enterprise-wide insights for all national and field marketing teams.• Incorporate banner advertisement and coupon offer combinations; no interest in the

banner ad often means a shopper will never click through to view the coupon.

7

Using OfferArchitect™

8

Master the Art & Science of Promotion OptimizationTrade Promotion Management and Trade Promotion Optimization software are mainstays for CPG companies However, these data-driven platforms often fall short in overall accuracy, as they ignore the often irrational and unpredictable behavior of the shopper.

Data can shift based on consumer actions, and dramatic behavioral changes can be triggered.

OfferArchitect™ blends the art and science of in-store econometric trade promotion activity with digital Behavioral Economics testing methodologies, the study of non-monetary psychological, social, cognitive and emotionalfactors on purchase decisions. OfferArchitect incorporates the most advanced digital research techniques including Hedonic Bundling, Message Framing, and Heuristic Learning.

9

Applying Principles of Behavioral Economics:Behavioral Economics studies the effects of psychological, social, cognitive and emotional factors on the economic decisions of individuals. The core premise is that shoppers are more compelled to make purchase decisions based upon subconscious – and often irrational – biases, not only upon price.

Heuristics are integral to Behavioral Economics-based testing platforms. A heuristic technique, is an approach to problem solving, learning, or discovery that is based on experimentation, evaluation or trial-and-error methodologies. They are typically the mental shortcuts that ease the cognitive load of making a decision – the rules of thumb, the intuitive judgments and the common sense.

10

The Importance of Live Environmental Testing:Imagine a CPG company building a digital offer for dog food in the form of a banner ad. Say the banner ad has four distinct variables: photography, color, copy, and call to action, and each variable has four distinct values. Using simple combinations, there are 4x4x4x4 possibilities for how this banner ad will ultimately look, or 256 combinations.

RevTrax uses our proprietary technology and data science techniques to offer our clients real-time testing in a live production environment with a national audience. And we do it fast.

Of 256 possible combinations in the above example, the CPG company will only have to create one barcode, and RevTrax will iteratively test all 256 combinations using both multivariate testing and AB testing techniques. With each round of testing and refining, we get closer to and ultimately reach the most effective offer.

11

Real Actionable Insights

12

OfferArchitect™ Stories• In a cross-category hedonistic offer bundle, the spillover effect of a

$3.00 versus $1.50 anchor item offer was a 17% increase in control redemptions; given shoppers assumed all the offers had a higher face value.

• The inclusion of a newborn photo on a baby care product offer triggered an emotional response that increased the redemption rate at a large mass market retailer by 40%.

• For a health and beauty care product, framing the offer as “$3.25 After Discount”, versus “$2.50 OFF”, generated a 130% increase in redemptions at a national drug store chain.

Sales@reftrax.com • www.revtrax.com • 1.866.996.TRAX(8729)

Contact a RevTrax professional for more information at sales@revtrax.com

or 1.866.866.TRAX(8729)