Merchandisers Reduce Shrink

Agilence enables merchandisers to see the effects of their programs directly at the point-of-sale.  Today's retail environment is very competitive and merchandisers and advertisers have created new and unique ways to encourage customer loyalty.  However, these new incentives are creating a new breed of shrink.  Promotion and coupon fraud is the fastest growing segment of shrink and without the proper controls and analysis retailers are throwing away good money after bad through these operational inefficiencies. 

Agilence enables advertisers and merchandisers to protect their programs by reducing promotion and coupon fraud.  In addition, Agilence goes beyond standard shrink control to help merchandisers evaluate the efficiencies of their programs.

Example:  An Agilence customer had created a promotion that gave the customer a $3.00 coupon to offset the cost of cashing a check, also $3.00.  This program was implemented to encourage customers to spend their money in the store and increase the basket size.  However, Agilence Analysts found that the promotion was not only NOT increasing sales, but it was taking money directly from the bottom line.  Instead of applying the $3.00 coupon to a large order, customers were purchasing one small item, typically under a dollar, and getting more than $2.00 in change.

Agilence recommended that the retailer implement the following solution:

• Change the coupon policy so that customers must spend $30.00 to get the credit
• Train the cashiers to properly handle coupons so that cash is not given in return

It is estimated that this promotion would have cost the retailer over $5 million across all stores in just a single year.

To learn more, contact Agilence or call 856-366-1200.