Learn Center

What Offers Management Means for Your Business

What are Offers Management Platforms (OMP)?

Today's brands operate at a large scale, creating the need for mass distribution of customer offers—such as customer loyalty offers and discounts—often as part of strategic rewards programs.

However, marketers often distribute offers with no protection against abuse or over-redemption. As a result, marketers are finding it difficult to manage distribution and redemption of digital offers, without hurting commercial interests.

Many high-value free offers or discounts end up being spread on the Internet in unexpected ways. These security and control risks can put a strain on a company's marketing budget. To address these challenges, marketers use new technologies to control allocation, measure activity, optimize the value of offers and maximize the effectiveness of campaigns.

An Offer Management Platform (OMP) lets direct marketers define promotional campaigns, work with their existing marketing stack (DMP, ESP, CRM or other marketing solutions) to manage digital offer distribution while providing security and control. The end goal is to eliminate unwanted or fraudulent spend on offers, improve offer effectiveness and increase the ROI of your spend on customer offers.

In this article, you will learn:

What are Offers Management Platforms (OMP)?

Benefits of Offer Management Platforms

Improved Security

Limit Fraudulent Offer Redemption

Tracking and Actionable Insights

Connect the Path-to-Purchase Journey

Should Offer Management Be A Core Part Of Retail Strategies?

Benefits of Offer Management Platforms

Improved Security

Security is essential for the distribution of offers. An OMP gives marketers better control over the distribution of offers:

  • User-level security—allows a single user to access offers a limited number of times. These users must come from authorized sources such as paid advertisements, social media posts or email links to take advantage of the offer.

  • Offer template protection—the offer template is secure and uses a verification protocol to prevent fraudulent repayments. Businesses can use this technology to verify or decline offers at point of sale.

Limit Fraudulent Offer Redemption

Offer management platforms enable customers to access offers from standard home ISPs but block fake IP addresses from black hat ISPs or offshore proxy servers. They calculate a global score measuring the customer’s total redemption of offers across all access channels, limiting a user’s ability to perform fraudulent engagement or abuse and blocking malicious actors.

Tracking and Actionable Insights

Tracking offers across multiple digital channels can be difficult. Marketers commonly outsource offers to coupon sites and do not have the visibility they need to successfully run marketing campaigns.

An OMP can build a unified promotions database that lets you analyze long-term trends and learn from them to formulate future marketing strategies. Brand owners can track offers across external providers, building valuable internal data integrated with their existing data assets. They can then use this data to deliver personalized offers that increase revenues.

Connect the Path-to-Purchase Journey

Customers might access coupons on one channel and then redeem them on another channel. An offer management platform can connect data points about prospects across channels. It can help track conversions all the way from initial digital engagement to store sales. Knowing what customers are doing at each stage of the path can help you identify the optimal touch points to provide free offers and discounts.

Should Offer Management Be a Core Part Of Your Strategies?

There are three arguments for using offer management systems to improve your marketing campaigns.

1. Personalized discounts

It is widely accepted that segmentation marketing and personalization are critical to marketing success. Offer management platforms ensure that unique brand discounts are displayed to the right people at the right time across marketing channels (email, search, social media, advertising, direct mail, etc).

An OMP does not always manage personalization of messages sent to consumers. Often, it complements personalization systems, allowing those systems to insert the right type of offer that is likely to be acted on by each type of customer.

2. Omnichannel offers management

An offer management system ensures that marketers don’t have to set up the same offer multiple times in different systems and don't need to worry that consumers will see the same offer multiple times.

In addition, an OMP can select the best offer for each customer based on a configurable pool of offers and products, using historical behavioral data collected in the OMP database.

3. Reporting and analysis

Offer management systems provide customizable analysis tools and dashboards. They can integrate with other marketing systems, such as CRMs. Offers data is owned by the customer and can be combined with first-party and third-party data to derive insights for improving campaigns. This helps marketers create a holistic view of customers and the offers they interacted with, to enable ongoing offer optimization.

Offers Management with Formation

Formation empowers companies to achieve true 1:1 marketing at enterprise scale. With a combination of automation, AI and ML, our platform continues to learn about customer preferences, analyzing their interactions and fine-tuning offers, including free offers and discounts, until they are in a segment of one. Our solution automates offer development and execution, enabling marketing teams to be more efficient and effective in engaging and retaining customers.

Learn more about the Formation platform or contact us to see how Formation can help improve your marketing results.