Introduction

In the ever-evolving landscape of online marketing, businesses continuously seek innovative ways to connect effectively with their audience while optimizing costs. In response to this challenge, KUPPON has embraced a groundbreaking pricing model, harnessing the power of AI's contextual understanding capabilities. We have structured our platform around the following core principles regarding what businesses pay to connect with customers.

This new pricing model promise to reshape how businesses engage with customers and measure marketing success through the KUPPON Platform. In this comprehensive article, we'll delve into each model, dissecting their definitions, formulas, use cases, and exploring their significance in the world of online marketing.

Why is this needed?

In an era where personalized marketing is paramount, leveraging AI to detect relevant Interactions are poised to play a pivotal role in revolutionizing the way marketing platforms charge for advertisement. Traditional marketing approaches often cast a wide net, hoping to capture the attention of a broad demographic. However, in today's digital landscape, consumers are inundated with information, advertisements, and promotions, leading to what's often referred to as "content fatigue."

This is where KUPPON's unique approach reveals itself as a game-changer. Instead of focusing solely on the quantity of views or interactions, our model prioritizes the quality and depth of engagement between consumers and businesses. It goes beyond surface-level metrics like clicks and views to gauge how users genuinely interact with offers.

For businesses, this shift towards a more personalized approach is significant. It enables them to move away from generic, one-size-fits-all marketing strategies and, instead, craft campaigns tailored to specific individual preferences. The KUPPON business console provides insights into what truly captivates and engages users, helping businesses refine their content to be more relevant and directly address each user's interests and needs.

Imagine receiving offers and promotions that align seamlessly with your tastes, interests, and past interactions. This level of personalization not only enhances the user experience but also dramatically increases the chances of conversion. Users are more likely to engage with and act upon offers that genuinely appeal to them, leading to higher conversion rates and improved customer loyalty.

In essence, KUPPON is a catalyst for the next frontier in marketing – one where every interaction between businesses and consumers is thoughtful, purposeful, and highly relevant. It's a shift from the traditional, intrusive advertising model to a more user-centric approach where customers feel valued, understood and appreciated. In this landscape, our business partners stand to not only boost their marketing effectiveness but also forge stronger and more meaningful connections with their audience, setting the stage for long-term success in the digital age.

Understanding the Context

It's essential to note that while some of the acronyms we use are common in marketing, they take on precise meanings within the context of KUPPON. This article doesn't aim to create new marketing metrics but rather to explain how KUPPON leverages these metrics for more equitable pricing models within our ecosystem.

We believe in focusing on the application rather than coining new terms. Regardless of nomenclature, this article clarifies the profound impact of artificial intelligence on intricate structures and how these capabilities benefit users. We anticipate that this approach will gain widespread acceptance and be adopted by new products and platforms in online marketing. This trend may eventually encourage major players like Google and other search engines to adopt similar systems, ultimately leading to more precise targeting and potentially rendering broad net approaches obsolete.

UCI (User Centric Insight)

User Centric Insights (UCI) form the cornerstone of KUPPON's groundbreaking approach to digital marketing and coupon distribution. This innovative concept signifies a fundamental shift in how businesses engage with consumers in the digital era.

At its core, UCI prioritizes the user's experience and preferences above all else. KUPPON harnesses cutting-edge technologies such as AI and machine learning to not only comprehend how users interact with content but also gain profound insights into their unique preferences and attributes. By contextualizing this information, KUPPON generates sophisticated data sets that serve as the foundation for tailored recommendations, enriching the platform's overall user experience.

UCI enables KUPPON to predict user behavior and pinpoint the most opportune moments for offering discounts and deals, ensuring relevance and engagement. This user-centric approach drives higher levels of engagement and conversion rates, setting KUPPON apart in the coupon industry.

In summary, User Centric Insights is a philosophy that places users at the epicenter of KUPPON's marketing strategy. It's a commitment to quality over quantity, emphasizing meaningful interactions and personalization. Ultimately, UCI propels KUPPON's mission to transform the coupon industry, creating a mutually beneficial ecosystem for both businesses and consumers.

ARI (AI detected Relevant Interaction)

AI Detected Relevant Interaction (ARI) is at the core of our strategy for recognizing valuable interactions. To initiate a valid ARI, there must first exist a well-defined user interest, derived from our sophisticated User Centric Insights (UCI) collected before the current user interaction.

This innovative approach ensures that businesses are exclusively billed for interactions that hold genuine relevance and value for the user. This methodology not only optimizes the Cost Per Outcome (CPO) for businesses but also significantly enhances the user experience. Users are exclusively presented with offers and interactions of high relevance and quality, resulting in a more personalized and gratifying platform experience.

Establishing Interest Through UCI

ARI relies on a well-defined interest that can be derived from the User Centric Insights (UCI) acquired before the current user interaction. UCI, driven by sophisticated AI and machine learning, forms the foundation for recognizing valid ARI moments.

AI-Driven ARI Triggers

ARI is triggered whenever a user engages with the KUPPON platform. KUPPON's advanced AI model analyzes these interactions in real-time. To fully grasp ARI, it's crucial to recognize the three distinct levels of engagement that signify genuine user interest and involvement.

Internal Quality Score

Each ARI is meticulously rated by our system, assigning an internal quality score based on various parameters. These parameters include factors such as the timing of the interaction, the source of the engagement, price levels, and the offer's appeal determined by other customer ratings, among many other data points.

Determining CPO

The Cost Per Offer (CPO) is calculated based on the quality score of the ARI. This is the metric that businesses pay for, ensuring that they invest in interactions that have been deemed genuinely relevant and engaging by the user.

In summary, ARI, driven by advanced AI and grounded in user-centric insights, exemplifies KUPPON's dedication to revolutionizing the coupon industry. It's a model that not only benefits businesses by making their marketing investments more efficient but also enhances the user journey by ensuring that offers align with individual preferences, resulting in a win-win scenario for all stakeholders.

KUPPON specific Use Cases

• A User receives a notification over the KUPPON App and takes action by pressing on the alert and opening the offer in the app.
• Someone receives a referral-link to the coupon, clicks on the link and interact with the content of the page or stay engaged for a prolonged period of time.
• A user asks the KUPPON Ai-Assistant for a coupons of a specific product and receives the best matching recommendations based on their query and preferences.

Importance for Online Marketing

ARI provides businesses with a precise measure of customer engagement, allowing them to fine-tune their marketing strategies for higher conversion rates. It empowers businesses to focus their resources on interactions that are more likely to lead to conversions.

Tracking and Analytics

The technology to track ARIs is already widely available as part of the services offered by Analytics Platforms like Google Analytics or Piwik Pro, among others.

Future Significance

In an era where personalized marketing is paramount, ARI will play a pivotal role in crafting tailored campaigns that resonate with individual preferences. This is the future of marketing, where quality interactions replace quantity-based approaches.

AICV (Average Incremental Customer Value)

AICV stands for Average Incremental Customer Value. It's a metric that measures the additional value that customers bring when they use coupons or special offers. This value is typically calculated for each market or industry separately and is based on real market data.

AICV is a crucial component of KUPPON's financial strategy, as it signifies the average customer spending when utilizing a coupon. It serves as the foundation for calculating redemption fees and helps businesses understand the impact of coupon usage on their overall revenue and customer value.

Essentially, AICV helps quantify the value of coupons in terms of increased customer spending and overall business performance.

CPR (Cost per Redemption)

The Cost per Redemption (CPR) is another vital metric in KUPPON's system. It's essential to understand how it works. When a business creates a new coupon on our platform, they specify a value, which represents what they expect to gain financially when someone redeems this coupon.

This value is a crucial factor in determining the CPR rate. Our AI steps in to assist the business manager. As they set the coupon's value, our AI calculates the CPR rate in real-time. This rate reflects the cost incurred by the business for each redemption of that specific coupon.

Importantly, the higher the value set by the business manager, the higher the CPR rate. However, a higher CPR rate can impact the distribution of the coupon. Our algorithm seeks to recommend coupons to users who are likely to generate high Average Incremental Customer Value (AICV) for the business. So, if a coupon's value is set too high, it might not be recommended as frequently, as it could become cost-inefficient for the business.

In essence, businesses must strike a balance when setting coupon values. They need to consider how much they're willing to spend per redemption while ensuring their coupons remain attractive to users with a high AICV. It's a delicate balance, and our AI assists them in making these decisions in real-time during the coupon creation process.

Data Privacy

We fully understand the concerns related to AI and the potential risks it poses. It's important to realize that AI is essentially a highly complex algorithm designed to perform specific tasks within its set parameters. Its capabilities can be both impressive and, at times, not quite as remarkable as they might seem.

Our deep involvement in AI development since its inception has given us a profound understanding. We firmly believe that the main risks associated with AI are not due to the technology itself but rather stem from how humans may misuse it. While this is a complex issue that deserves further discussion, it's crucial to emphasize our commitment to user privacy and data security.

To protect user privacy, we do not directly store individual user-specific information. Instead, we use aggregated insights to categorize users into broader data sets. Our use of AI is solely dedicated to delivering the best possible service, providing personalized experiences, and ensuring exceptional efficiency.

In today's digital landscape, data collection occurs extensively, sometimes with or without explicit consent or knowledge. We are dedicated to handling this data responsibly and ensuring that user interactions on our platform are both meaningful and secure while respecting their privacy.

Conclusion

KUPPON's CPO (Cost Per Offer) and CPR models work together to provide businesses with a comprehensive understanding of their marketing expenses and the success of their campaigns, ensuring that they pay for meaningful interactions and redemptions.