You say you want marketing news and commentary? Well, you came to the right place. The Big Fat Marketing Blog is updated daily by the editors of Chief Marketer, Direct, Promo and Multichannel Merchant. Opinions? Oh yeah, we got em'. Don't say we didn't warn ya'.

Carl’s Jr. Coupon Accidentally Goes Supernova

carls-restnt-redo.jpgThe lesson for today is that while it’s great to make friends with a coupon promotion, you’d better realize that those friends have other friends—and they don’t mind sharing.

California-based quick service chain Carl’s Jr. found that out last week when they ran a promotion at a Los Angeles Lakers basketball game offering a small group of contest winners a reasonable prize: the chance to get texted a code to input in a specific spot on the Lakers Web site that would let them access a printable coupon for a free Carl’s Jr. burger.

It all seemed manageable enough. The text only went out to 276 contest winners during that one Staples Center game with the New Orleans Hornets. (Don’t ask me what these 276 won to earn their prize, because I don’t know and can’t find out.) The page on the Lakers web site was only open for 48 hours, and the participating Carl’s stores were ready to accept the paper coupons.

And yet, and yet. A day after it kicked in, the promotion was cancelled, the Lakers Web page connected to the promotion was closed, and at least some of the Carl’s Jr. outlets were posting signs saying that the coupons would not be honored because they had been “seized from a secured Web site and distributed illegally.”

According to press reports, the promotion was halted after 50 redemptions. I’m not certain how 50 coupons from an expected redemptions pool of 276 tipped Carl’s or its parent CKE Restaurants that something had gone awry. Maybe someone presented a coupon in the 12 states other than California where Carl’s has outlets.

More likely, someone from the company or one of its agencies was monitoring the Web or just doing a Google search and saw that the limited-circulation coupon code was in fact making the rounds of the many, many Web sites focused on aggregating coupon deals and free stuff. Once released into the wild, the code just spread logarithmically. You can’t stop the march of free food across the Internet.

According to a blog report, Carl’s says it will still honor coupons from presenters who can show that they were actually at that Lakers-Hornets game. (See, kids, that’s why you should always keep the stub.)

But that’s closing the barn door very much after the coded horse has run off. What could Carl’s have done to keep these coupons from going accidentally viral, and how could they better have handled the error once it showed itself?

Shira Simmonds, president and co-founder of mobile coupon platform Ping Mobile—and not involved with the Carl’s Jr. promotion—says that coupon promotions for free anything need to be on the lookout for unwanted viral spread through discount aggregators and affiliate networks.

But even more, she adds, the campaign could have been controlled by getting rid of carbon-based couponing and restricting the offer to mobile coupons only. “The first step would have been to put it on the phone [using a platform such as Ping’s],” she says. “Then on the mobile phone we could have used unique coupon codes that would have prevented the offer from being forwarded to other recipients.”

Everyone who texted in to get the coupon would then have simply brought their phone to the restaurant and shown the text message with the code. Counter workers could have inserted the code from the SMS, validated it, and handed over the free grub.

Using a mobile coupon would even have given Carl’s an additional promo opportunity, Simmonds points out. “If someone tried to share the mobile coupon, servers could check it and say, ‘Sorry, this coupon has already been redeemed. But if you text the word ‘Junior’ you can get a free fries with your burger.’ That gives the other customers an incentive to stay in the restaurant and purchase.”

That’s got to work better than simply assuming all customers, including the 276 with legitimately obtained paper coupons, are guilty unless they can prove they were at the game.

To be fair, many store operators and franchisees of chains like Carl’s are more comfortable taking paper coupons. Their POS systems or their sales staff may not quite be up to the task of inputting codes or other data from customers’ phones, and being able to match slips of paper received against free burgers given out is an easy way to keep a handle on employee malfeasance.

And some marketers basically are willing to trade a certain number of Web-shared coupons for benefits such as increased store traffic and the sampling of new menu items. But the giveaway items have to be priced right. A retailer can afford to distribute a number of free 79-cent sundaes; putting the power of viral Web distribution under an offer of a free $2.75 hamburger can be a promotional disaster.

Digg Syndication Del.icio.us Syndication Google Syndication MyYahoo Syndication Reddit Syndication

Email This Post Email This Post

Related Topics: Promo Interactive - General, Promo Interactive - Viral/Word of Mouth, Promo Interactive - Retail, Promo Interactive

5 Comments to “Carl’s Jr. Coupon Accidentally Goes Supernova”

  1. Really? You are going to make me drive to your restaurant to get the burger I’m excited about winning so that I can read the make shift sign on your door that pretty much tells me to prove I was at the game or leave. Yeah, I’m going to feel good about doing business with you in the future - NOT - No wonder some in the restaurant industry are struggling.

    If I owned a Carl’s Jr I would take down the sign and accept the coupon - I know that -
    The damage has been contained - no more coupons can be printed
    My food cost on that item is less that $1
    Spending a $1 to get a guest in the door is cheap
    A big percentage of coupon holders will spend additional dollars - fries drink etc.

    Then - I would turn them into a customer for life by making sure the food and customer service they received was so amazing that they would never consider going anywhere else. Imagine the word of mouth on that.

  2. You’re kidding, right? I’ll tell you about a real coupon disaster that makes the little babies at Carl’s Jr. look pathetic.

    Years ago in one market, Wendy’s printed coupons for free single, double and triple burgers in the newspaper. Circulation of about 250,000 at the time. About 15 Wendy’s stores were affected.

    The coupons were supposed to have staggered valid dates so that each week, one of the coupons would be valid for one 7 day period. Unfortunately, the ads as printed all had the valid dates during the same week. By noon of the first day, every Wendy’s in that market ran out of hamburgers, essentially putting them out of business and forcing them to turn away any customer ordering a hamburger - virtually every customer. Since it was a Sunday, there was no way to get an emergency re-order of ground beef to the stores. Now that is a real disaster, not an imagined one like Carl’s Jr.

    Oh and the Wendy’s franchise simply adjusted their food orders and continued to honor all of the coupons and just bit the bullet on the promotion in order to satisfy customers.

  3. OUTTA NAMES: I get your point but we’re not talking a 4 course meal at Ducasse in NYC. Do the words ‘food’, ‘amazing’ and ‘Carl’s Jr’ really go together? We’re talking about a fast food hamburger, and watch out because loyal customers could ultimately turn into fat customers who turn around and sue because they didn’t realize their Carl’s Jr. addiction, er, loyalty might negatively impact their health!!!!!!!

  4. Admittedly, accusing thousands of people of fraud is not the best PR move. And Carl’s has had PR issues in the past.

    But, it is 2009. We have serious planet issues. And we’re still taking paper into a restaurant…really?!

    I run a mobile couponing company. My experience is that merchants are smart cookies, and they appreciate the viral nature of any good deal. They “build in” a friends factor expecting (hoping) that their customers will forward the mobile coupons to friends. To date, the surprise factor has been upside for them. None of them have been unprepared for the customers that walk in with a text that gives them a deal…and the friends of the customers…and the friends of the friends.

    Like Ping and CellFire and 8Coupons, our company will do protected, one-time codes in SMS marketing. But the point of great Internet or Mobile couponing is the viral buzz. I mean, do you really want to be the only one who gets the deal?! Or do you want to be able to forward to your friends so you can all go chow down after a game?

    Just because you CAN do something with technology doesn’t mean you should.

    http://qpons.nearu.us

  5. Also, the photos on Wired’s blog about the crisis were from me. :D

Leave a Comment

Acceptable Use Policy

authimage
Enter the word as it is shown in the box above.
If you can't see the word, refresh the page.

Carl’s Jr. Coupon Accidentally Goes Supernova

carls-restnt-redo.jpgThe lesson for today is that while it’s great to make friends with a coupon promotion, you’d better realize that those friends have other friends—and they don’t mind sharing.

California-based quick service chain Carl’s Jr. found that out last week when they ran a promotion at a Los Angeles Lakers basketball game offering a small group of contest winners a reasonable prize: the chance to get texted a code to input in a specific spot on the Lakers Web site that would let them access a printable coupon for a free Carl’s Jr. burger.

It all seemed manageable enough. The text only went out to 276 contest winners during that one Staples Center game with the New Orleans Hornets. (Don’t ask me what these 276 won to earn their prize, because I don’t know and can’t find out.) The page on the Lakers web site was only open for 48 hours, and the participating Carl’s stores were ready to accept the paper coupons.

And yet, and yet. A day after it kicked in, the promotion was cancelled, the Lakers Web page connected to the promotion was closed, and at least some of the Carl’s Jr. outlets were posting signs saying that the coupons would not be honored because they had been “seized from a secured Web site and distributed illegally.”

According to press reports, the promotion was halted after 50 redemptions. I’m not certain how 50 coupons from an expected redemptions pool of 276 tipped Carl’s or its parent CKE Restaurants that something had gone awry. Maybe someone presented a coupon in the 12 states other than California where Carl’s has outlets.

More likely, someone from the company or one of its agencies was monitoring the Web or just doing a Google search and saw that the limited-circulation coupon code was in fact making the rounds of the many, many Web sites focused on aggregating coupon deals and free stuff. Once released into the wild, the code just spread logarithmically. You can’t stop the march of free food across the Internet.

According to a blog report, Carl’s says it will still honor coupons from presenters who can show that they were actually at that Lakers-Hornets game. (See, kids, that’s why you should always keep the stub.)

But that’s closing the barn door very much after the coded horse has run off. What could Carl’s have done to keep these coupons from going accidentally viral, and how could they better have handled the error once it showed itself?

Shira Simmonds, president and co-founder of mobile coupon platform Ping Mobile—and not involved with the Carl’s Jr. promotion—says that coupon promotions for free anything need to be on the lookout for unwanted viral spread through discount aggregators and affiliate networks.

But even more, she adds, the campaign could have been controlled by getting rid of carbon-based couponing and restricting the offer to mobile coupons only. “The first step would have been to put it on the phone [using a platform such as Ping’s],” she says. “Then on the mobile phone we could have used unique coupon codes that would have prevented the offer from being forwarded to other recipients.”

Everyone who texted in to get the coupon would then have simply brought their phone to the restaurant and shown the text message with the code. Counter workers could have inserted the code from the SMS, validated it, and handed over the free grub.

Using a mobile coupon would even have given Carl’s an additional promo opportunity, Simmonds points out. “If someone tried to share the mobile coupon, servers could check it and say, ‘Sorry, this coupon has already been redeemed. But if you text the word ‘Junior’ you can get a free fries with your burger.’ That gives the other customers an incentive to stay in the restaurant and purchase.”

That’s got to work better than simply assuming all customers, including the 276 with legitimately obtained paper coupons, are guilty unless they can prove they were at the game.

To be fair, many store operators and franchisees of chains like Carl’s are more comfortable taking paper coupons. Their POS systems or their sales staff may not quite be up to the task of inputting codes or other data from customers’ phones, and being able to match slips of paper received against free burgers given out is an easy way to keep a handle on employee malfeasance.

And some marketers basically are willing to trade a certain number of Web-shared coupons for benefits such as increased store traffic and the sampling of new menu items. But the giveaway items have to be priced right. A retailer can afford to distribute a number of free 79-cent sundaes; putting the power of viral Web distribution under an offer of a free $2.75 hamburger can be a promotional disaster.

Digg Syndication Del.icio.us Syndication Google Syndication MyYahoo Syndication Reddit Syndication

Email This Post Email This Post

Related Topics: Promo Interactive - General, Promo Interactive - Viral/Word of Mouth, Promo Interactive - Retail, Promo Interactive

5 Comments to “Carl’s Jr. Coupon Accidentally Goes Supernova”

  1. Really? You are going to make me drive to your restaurant to get the burger I’m excited about winning so that I can read the make shift sign on your door that pretty much tells me to prove I was at the game or leave. Yeah, I’m going to feel good about doing business with you in the future - NOT - No wonder some in the restaurant industry are struggling.

    If I owned a Carl’s Jr I would take down the sign and accept the coupon - I know that -
    The damage has been contained - no more coupons can be printed
    My food cost on that item is less that $1
    Spending a $1 to get a guest in the door is cheap
    A big percentage of coupon holders will spend additional dollars - fries drink etc.

    Then - I would turn them into a customer for life by making sure the food and customer service they received was so amazing that they would never consider going anywhere else. Imagine the word of mouth on that.

  2. You’re kidding, right? I’ll tell you about a real coupon disaster that makes the little babies at Carl’s Jr. look pathetic.

    Years ago in one market, Wendy’s printed coupons for free single, double and triple burgers in the newspaper. Circulation of about 250,000 at the time. About 15 Wendy’s stores were affected.

    The coupons were supposed to have staggered valid dates so that each week, one of the coupons would be valid for one 7 day period. Unfortunately, the ads as printed all had the valid dates during the same week. By noon of the first day, every Wendy’s in that market ran out of hamburgers, essentially putting them out of business and forcing them to turn away any customer ordering a hamburger - virtually every customer. Since it was a Sunday, there was no way to get an emergency re-order of ground beef to the stores. Now that is a real disaster, not an imagined one like Carl’s Jr.

    Oh and the Wendy’s franchise simply adjusted their food orders and continued to honor all of the coupons and just bit the bullet on the promotion in order to satisfy customers.

  3. OUTTA NAMES: I get your point but we’re not talking a 4 course meal at Ducasse in NYC. Do the words ‘food’, ‘amazing’ and ‘Carl’s Jr’ really go together? We’re talking about a fast food hamburger, and watch out because loyal customers could ultimately turn into fat customers who turn around and sue because they didn’t realize their Carl’s Jr. addiction, er, loyalty might negatively impact their health!!!!!!!

  4. Admittedly, accusing thousands of people of fraud is not the best PR move. And Carl’s has had PR issues in the past.

    But, it is 2009. We have serious planet issues. And we’re still taking paper into a restaurant…really?!

    I run a mobile couponing company. My experience is that merchants are smart cookies, and they appreciate the viral nature of any good deal. They “build in” a friends factor expecting (hoping) that their customers will forward the mobile coupons to friends. To date, the surprise factor has been upside for them. None of them have been unprepared for the customers that walk in with a text that gives them a deal…and the friends of the customers…and the friends of the friends.

    Like Ping and CellFire and 8Coupons, our company will do protected, one-time codes in SMS marketing. But the point of great Internet or Mobile couponing is the viral buzz. I mean, do you really want to be the only one who gets the deal?! Or do you want to be able to forward to your friends so you can all go chow down after a game?

    Just because you CAN do something with technology doesn’t mean you should.

    http://qpons.nearu.us

  5. Also, the photos on Wired’s blog about the crisis were from me. :D

Leave a Comment

Acceptable Use Policy

authimage
Enter the word as it is shown in the box above.
If you can't see the word, refresh the page.

About

You say you want marketing news and commentary? Well, you came to the right place. The Big Fat Marketing Blog is updated daily by the editors of Chief Marketer, Direct, Promo and Multichannel Merchant. Opinions? Oh yeah, we got em'. Don't say we didn't warn ya'.

Social Media

  • Share

Calendar

January 2009
M T W T F S S
« Dec   Feb »
 1234
567891011
12131415161718
19202122232425
262728293031  

Your Account

Subscribe

Subscribe to RSS Feed

Subscribe to MyYahoo News Feed

Subscribe to Bloglines

Google Syndication