Article

Building your own ATM coupon program

Here's how to generate more revenue from your ATM network using receipt paper and a little hard work.

March 7, 2002

ATM coupon programs are simple when you understand the components involved.

First, you need to analyze your reasons for embarking on a coupon program in the first place. Do you want to squeeze more revenue out of your ATM network? Do you want customized receipts with your logo? Is there an important message you need to convey to your ATM users?

Deciding why you want coupons on your receipts is the first step. You may find out your reasons don't justify the work involved.

There are some ad agencies who will provide free rolls with preprinted coupons on the back. The advertisers they give you tend to be national companies, however, and may not be redeemable in your area. Also, you're only getting free paper--you're not cashing in on the real revenue out there.

Selling ATM advertising is an opportunity many ATM owners and banks are discovering. It can be difficult and time consuming, but the rewards make sense if you have the resources to do it.

What can you charge for your coupons? The actual price will depend on what size market you're in, but the average is anywhere between four and eight cents per coupon.

To figure the total amount to charge an advertiser, first figure out the length of your receipt. Most of them are four to six inches long. Then multiply the footage of your roll by 12 inches and divide that by your receipt length to get the number of receipts per roll. Here's an example for a six-inch receipt:

1000-foot roll x 12 inches = 12,000 inches per roll
12,000 inches / 6-inch receipts = 2,000 receipts per roll

Now you know how many receipts you have, but you still don't know how many coupons per roll you can sell. We suggest anywhere from three to six coupons per receipt. Each block of coupons will be repeated every six inches (or however long your receipt is). The only way to accurately space this out, however, is to match it with the black sensemark on your receipts. Otherwise your coupons will just have to appear randomly on the paper, which is till okay.

Next figure out how much to charge each of the advertisers (if you have only four coupon spaces, that will equal four advertisers). In this example each of the four advertisers can have 2,000 coupons per roll. If you charge $.06 per coupon, the math works out like this:

2,000 coupons x $.06 = $120 per roll
$120 per roll x 4 advertisers per roll = $480 potential revenue per roll

Even if you only print ten rolls, your printing costs will be more than covered by this advertising revenue. For low quantities even a thermal roll may only cost about $60 each. That leaves $420 in profit per roll. Even if you only sell one advertiser you can still make money.

Once you locate some willing advertisers it's just a matter of helping them decide what to print on their coupon. The most effective coupons make a great offer-more than just 10% off or a free gift with purchase. The advertisers will get much better results when they offer deals consumers can't turn down. It behooves you to make sure these deals are attractive. That way more coupons will be redeemed and the advertiser will see more results and will want to do it again.

If you're not a graphic designer, don't despair. Coupon design is relatively cheap, and you can charge the advertiser extra for it. It usually won't be more than $75 per coupon.

Now that you know the mechanics, keep this in mind: It's hard work. Make sure you have the time to see it through once you've started. Develop relationships with your advertisers and they'll trust you and will come back again and again.

One other caveat. Get your money up front!