Inmar leads the way in digital promotions
As we wrap up another round of holiday shopping mania, there’s a powerful force at work behind the scenes. For more than 30 years a company you may not know has been quietly helping you shop every day, and lately they’re ambitiously working to change the way you’ll shop tomorrow. In the ‘Emerald City of Retail,’ the hidden Oz who’s helping to enhance your shopping experience (while not bothering to attract your attention) is a company called Inmar, and their ‘Intelligent Commerce Networks.’
Sometimes the brands you know and trust deliver on their Brand Promises by relying on other brands. Think ‘Intel Inside®[i]’: a great advertising slogan, catchy, memorable, succinct and effective. When you buy a computer, you’ll hopefully never even have to see the Intel chip, much less actually touch it; but the little sticker on the outside telling you it’s in there could easily sway your purchase decision. Another example, wordier but similarly powerful, is BASF’s old slogan:
We don’t make a lot of the products you buy. We make a lot of the products you buy better®[ii].
In both of these cases, the B2B company wants you, a consumer, to value their brands in order to make you feel better about buying – not from them, but from their customers, the B2C companies that sell finished consumer goods to you. It’s unlikely that you ever bought a chip directly from Intel or a drum of chemicals from BASF (unless you’re a bigger geek than the editors of BrandTech News, or go by the street name “Heisenberg.”)
But while you almost certainly know who Intel is, and probably have heard of BASF – the largest chemical company in the world (even if you don’t know what the letters stand for) – you might not know who Inmar is. And you might be surprised to learn that the financial transactions they process en masse daily have an annual aggregate value of about $44 billion across their promotion, supply chain and health care networks.
If you’ve ever clipped and used a paper coupon, chances are good that it was processed by Inmar. This was their first competency, and remains a major component of the company’s business. They started handling coupons back in the early 80’s, as Carolina Coupon Clearing, a company formed by the son of a Reynolds Tobacco exec who brought in a team of former IBM associates to elevate the process from one which, at the time, relied on weighing masses of paper coupons by the pound. The solutions they built, and the refinements that have evolved since, now enable a smooth, secure processing of billions of coupons from thousands of brands in countries around the globe. They currently process coupons for a large share of US companies; and they serve a global customer base with their broader promotional solution portfolio that has grown to include not only paper coupons, but also rebates, sweepstakes and now digital coupons – more on that in a minute. This approach of harnessing technology and smart thinking to improve complex processes still steers the company.
“It all starts and ends with people,” explained Inmar CEO David Mounts, at a recent interview. “We strive to find the best minds and intellectual capital we can, then we direct our investments to make it easier for bright people to deliver great solutions to our customers … and ultimately great experiences to consumers.”
In the coupon world, paper still dominates in sheer volume, but the most impressive growth percentages there days are being posted by digitally discovered coupons. Digitally discovered coupons fall into two major groups. The already familiar Print-At-Home (PAH) coupons – those discovered online and printed with home computers – increased in use by more than 12 percent in the first half of 2013, relative to 2012. The newer kid on the coupon block is the use of completely paperless “e-wallet” coupons, where the reward is either loaded to a consumer’s loyalty card or stored on a smartphone app. While still a small segment, the use of these promotions increased by more than 230 percent in the same period.
The targeting and personalization capabilities of these digital offers provide powerful new ways for marketers to engage and entice consumers with increasingly relevant offers, and to gain insights on what consumers preferred (and what provided the best return on investment). But with this new sophistication comes the matter of new complexity. To help brands and retailers cut through the cyber-maze, Inmar has developed their Offer Management app, which lets marketers easily create offers, aggregate performance data and score the promotional effectiveness of multiple offers across all channels.
The rapid development of these solutions by Inmar has, in part, been accelerated by two recent acquisitions: the first, a company that pioneered an innovative technology to facilitate the secure distribution and redemption of digital promotions; and the second, a company with deep expertise in shopper behavioral analytics. By combining Inmar’s own knowledge and experience of couponing and promotional strategies with the added power of analytics and shopper insights, and with the real-time, on-demand delivery of offers to smartphones and tablets, Inmar’s innovations are changing the promotional game for brands and retailers – and delivering offers to consumers on products they want, with promotion types they like, across the digital platforms they individually prefer.
One shopper insight that everyone knows is that shoppers in the checkout line don’t want to be delayed. Retailers are keenly aware of that, and they are particularly (and rightly) sensitive to the impact of any new technology at checkout that might slow things down. So the big hurdle that digital couponing has had to clear has been one of achieving a seamless and super-fast digital redemption when the paperless coupons are presented. No one wants to download a coupon offer to their loyalty card or unique identifier, then have to wait for an elaborate network to validate the coupon, in a setting where passing seconds feel like minutes. But the validation can’t be skipped, either, because coupon fraud can cost retailers millions. Inmar’s point of sale technology, developed by acquired company M-Dot achieves secure, accurate, real-time redemption by leveraging the speed and scalability of cloud technology. In fact, prior to Inmar’s acquisition, M-Dot was chosen as the winner of Amazon Web Services’ Startup Challenge. The solution is so scalable that it has been demonstrated to execute over a million concurrent transactions in a 10th of second.
More recently, Inmar built on that impressive back-end integration with a promising new front-end partnership. They recently announced a strategic relationship with NCR, one of the top Point Of Sale (POS) system providers for retail. The new offering will integrate Inmar’s digital coupon solution with NCR’s marketing and POS applications, providing retailers with a powerful new platform for quickly and easily planning and implementing digital coupon campaigns, offering paperless coupons to shoppers across multiple touchpoints … including mobile phones and tablets.
According to Mounts, “Retailers that ‘opt in’ will be able to introduce digital promotions into their marketing efforts with remarkable speed – and at minimal cost.”
It’s a win-win-win solution: shoppers get the added savings of digitally discovered coupons, without slowing down their checkout experience; retailers get an easy platform for implementing their digital coupon campaigns; and consumer goods manufacturers get a much more targeted delivery mechanism that can yield new insights in minutes.
For all the technology focus, Inmar hasn’t lost sight of its ‘human goals’ either. Ever since opening shop in Winston-Salem, Inmar has remained true to its community, where it is one of the area’s major employers. This part of North Carolina has seen economic decline over the past decades with the erosion of three of its major industries – tobacco, textiles and furniture – the latter two primarily declining due to relocation of the industries to cheaper offshore markets. Inmar, by contrast, has stayed in the game locally, opening three different offices as headquarters for its coupon, product returns and pharmacy solutions groups. Supporting operations in the supply chain, health care, and coupon redemption networks occupy around 30 additional facilities across North America.
Now the company is upping its ante by consolidating all three local offices into a beautiful new complex in downtown Winston, with almost a quarter million square feet of modern office space, renovated from an old tobacco processing plant. Located on the edge of the Wake Forest Innovation Quarter, a cornerstone of the Renaissance of Winston-Salem, the new facility clearly underscores Inmar’s corporate social responsibility and its commitment to the local jobs it has created.
When Mounts says it all starts and ends with people, he clearly means it. – JTS