Startup CoupSmart uses technology, buying power to better link consumers and companies

Coupons have long been a way for companies to inspire customer loyalty and for buyers to get a deal on their favorite products. Everybody is looking for deals nowadays, and technology and targeted marketing is making it easier for buyers and sellers to find each other.

Though coupons are a tried and tested marketing tool, the whole process can still be cumbersome and inefficient. Just think about the times you've pledged to use coupons, only to leave them on the kitchen counter while you're shopping. Or how often have you gotten coupons and free samples in the mail or in the newspaper for stuff you have no interest in?

A Cincinnati entrepreneur is working to build a virtual network where coupons become a more satisfying link between customers and companies.

"Couponing is really inefficient and uses archaic methods to reach people. They go after chunks of consumers based on certain demographics," said Blake Shipley, a former auditor for Kroger who lives in Hyde Park. 

In July, Shipley launched CoupSmart, an online targeted coupon site he founded that allows marketers to send you free samples and coupons based on your particular shopping habits.

"This will enable consumers to receive coupons they will actually use, related to the products they already buy," he said.

Shipley created CoupSmart after his own experience using coupons and from observing how he and others used them while he worked at Kroger. He left that job two years ago to devote his efforts to launching CoupSmart. He and Chief Technology Officer Troy Davis created the application. CoupSmart has office space in Columbia Tusculum with tech startups ShareThis and Transactiv.

Here's how CoupSmart works: Users sign up for the program online, creating a profile that includes their gender, email and home addresses, and first and last name. Then they download a CoupSmart app for their iPhone (plans are to make apps available for BlackBerries and Android phones soon.) The app allows users to scan the UPC for products they have purchased for home use.

CoupSmart stores that information and then provides it to companies, without any identifying info. A third-party distribution company will then send users free samples and coupons each month based on the products they have purchased in the past. Those samples could be for products they already use, or those that companies think they would be interested in based on what was bought in the past.

Shipley said CoupSmart is beneficial for both buyers and sellers. Buyers get coupons they are more likely to use. Sellers get access to people who are more likely to be interested in their products.

Shipley said CoupSmart will not sell identifying information to marketers, only the UPC information that users supply.

"It's all anonymous. It's very important to us to protect our users person information. We don’t want people who use our application to spam users," Shipley.

Shipley is currently working to add more consumer goods companies to offer products and coupons through the site. As he works at building CoupSmart's offerings, the company is giving out gift cards and free products every month to the first 3,000 users who scan 30 items.  Additionally, a drawing is conducted at the end of each month for $2,000 of Visa gift cards.  Users earn an entry into the drawing for every 30 items they scan each month.

Writer: Feoshia Henderson
Source: Blake Shipley, CoupSmart founder

You can follow Feoshia on twitter @feoshiasoapbox
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