Creating a Solid Foundation for Digital Promotions

J
jamin

SAVVY PROMOTION PROFESSIONALS know that digital promotions, like any other item of value, are subject to fraud and simple human error. However, problems with digital promotions can scale far more rapidly than with traditional promotions, exacerbating  financial and public affairs impacts.  Thus,  appropriate security procedures and a realistic view of marketplace risks are essential to address many of these issues, which include:

  • Fraud
  • Language or barcode errors
  • Incorrect promotional value
  • Product eligibility confusion

The Coupon Information Center (CIC) has researched promotions impacted by many of these issues over the past several months. Some of these situations have involved rapid attacks, apparently by hackers or bots. An automated attack can result in thousands of illegitimate “consumer” responses in a few minutes.

Fortunately, digital promotions offer the flexibility to modify, pause, or terminate live campaigns—an advantage over traditional methods. However, these issues often arise outside of normal business hours.   CIC once observed a significant issue caused by a single typographical error that occurred over a holiday weekend. The key person who could address the issue was out of touch for only two days, but during this time  aggressive consumers posted images of their “loot” on social media, causing losses to increase quickly.

Potential Solutions

The CIC is working with industry professionals and other associations to consider reasonable loss prevention procedures and policies that can be in place 24/7. Items being considered include:

  • Legal terms & conditions
  • Consumer facing digital promotion policies and communication channels
  • Fraud/abuse parameters:
    • Unusual spikes in web traffic
    • Excessive coupon views or downloads
    • Indicators of email spoofing
    • Abuse of burner phone numbers
    • Deviations from historical norms
  • Automated responses
    • Promotion pause, slow down award rates, claw backs
  • Roles & responsibilities – Who is authorized to make decisions regarding promotions in the field and how are they implemented?

While still a work in progress, these voluntary policies and procedures will help educate the industry and create a clear path to success in a rapidly changing industry.  Please contact Bud Miller at 2010@couponinformationcenter.com for more information.
 

Related Articles