Supplier-funded promotions: loyalty programs co-funded by each brand
Resources · Concept
A supplier-funded promotion is a discount, coupon or reward paid, in full or in part, by the brands that sell to the retailer: a consumer goods manufacturer at a supermarket or a beverage brand at a fuel station. Inside a loyalty program, it reaches the customer it fits and each brand sees its contribution and its result per campaign.
- PurchaseUSD 40 at the store
- Member< 50 ms p95
- AudienceBuys coffee, not the brand
The campaign
- Promotion2-for-1 on the brand
- Funded by50% brand · 50% store
- BudgetCap per campaign
- 0 msReceipt arrives
- ~150 msPromotion picked
- SettlementEach party's share
Fuel, quick service and retail, live
Fuel, quick service and retail programs already run on Qurable.
Shell Box, ON by Axion Energy, Mostaza's MostaClub and Grupo Dabra's TRIBU, among others. Figures come from the published case studies.
- 550,000Monthly active usersON by Axion Energy
- 1M+Members in the first yearTRIBU, by Grupo Dabra
- 45 daysTo productionTRIBU, by Grupo Dabra
- 3 countriesIn one launchMostaClub: Argentina, Uruguay and Paraguay
Key takeaways
- A supplier-funded promotion is paid, in full or in part, by the brands that sell to the retailer.
- It works when it reaches the customer it fits and the audience comes from the retailer's data.
- Each brand's contribution is recorded per campaign; results are measured against a control group.
The difference
The supplier's promotion on the shelf or on the receipt of the customer it fits.
In both cases the brand pays. What changes is who it reaches, how it is settled and what the brand can show afterwards.
| On the shelf, for everyone | With the customer identified | |
|---|---|---|
| Who it reaches | Everyone at the register, whether they buy it or not | The members it fits, for example people who buy the category but not the brand |
| Who pays | The brand, under a separate trade agreement | The brand and the retailer, with each one's percentage per campaign |
| How it is settled | Spreadsheets at period end | Each brand's contribution calculated per campaign and ready for settlement |
| What the brand sees | Total sell-out for the period | How many members of the audience bought the product and what it cost |
| Cost control | Known at period end | Budgets and caps per campaign, before the reward is given |
| Where it applies | On the shelf or in the flyer | At the register, in the app and online, with the same profile |
For each party
What each one gets out of it.
A co-funded promotion works when all three parties see value: the retailer, the brand that pays and the customer who receives it.
Less margin given away
The brand pays part of the promotion and it only reaches the customers it fits.
Its data, its asset
The audience comes from its loyalty program; the brand does not take the customer data.
Settlement without spreadsheets
Each brand's contribution is calculated per campaign.
New buyers
Reaches people who buy the category but do not buy it yet.
Results per campaign
How many members of the audience bought the product and what it cost.
Capped budget
The campaign stops giving the reward when its budget runs out.
A reward they use
The promotion for what they buy, not the whole flyer.
On the same receipt
The discount applies at the register, no coupon clipping.
A coupon to come back
A single-use coupon for the next purchase.
The agreement
What to define before launch.
Six points worth putting in writing between the retailer and the brand before the first campaign.
| Point | What to define |
|---|---|
| Each party's percentage | For example 50% the brand and 50% the retailer, or 100% the brand. |
| Who it reaches | Which members get the promotion and who builds the audience: the retailer, with its own data. |
| Cap and validity | Total budget, caps per customer, dates, weekdays and time windows. |
| Where it applies | Register, app, ecommerce or all of them, with the same customer profile. |
| What counts as a result | New buyers for the brand, repeat purchase and cost per buyer, against a control group defined up front. |
| How often and how | The settlement cycle and who collects from the brand: Qurable calculates, it does not move funds. |
By industry
Who pays in each industry.
The mechanics are the same; what changes is the brand that pays and what it wants to move.
Supermarkets
Consumer goods brands
A launch, an overstocked product or a category that is not growing.
- Example
- 2-for-1 for people who buy the category but not the brand.
Fuel stations
Convenience store brands
Drinks, snacks and coffee in the store, for drivers who already fill up in your network.
- Example
- Store combo with the fill-up.
Restaurants
Beverage and dessert brands
The brand pays part of the combo to gain presence in the order.
- Example
- The brand's drink at half price with the combo.
Pharmacies
Personal care brands
Skincare or personal care promotions for members who buy the category.
- Example
- A brand coupon for the next visit.
Banks and merchants
The merchant pays the cashback
The same model with a bank: the merchant funds the cashback to attract the bank's customers.
- Guide
- Merchant-funded cashback.
How to evaluate
Four questions for the platform vendor.
All four can be answered with the product on screen.
Who builds the audience?
The audience should come from the retailer's program, with its data, without handing the customer base to the brand.
Where is each brand's contribution?
Per campaign, with the agreed percentage, ready for settlement. If the answer is a spreadsheet, it is not an answer.
What happens when the budget runs out?
The campaign should stop giving the reward. If the cap is an alert, it is not a cap.
How do you measure whether it sold more?
With a control group that does not get the promotion, defined before launch.
With Qurable
The brand pays for the promotion, the audience stays yours.
In Qurable, a promotion is paid by the retailer and one or more brands according to an agreed percentage. Qurable picks who it applies to at payment, in ~150 ms, and records each brand's contribution per campaign. Qurable does not move funds: it calculates the contribution and gets it ready for settlement.
Promotion engine
Discounts, coupons and bonus points decided at payment, with budgets and priorities.
See the promotion engineBrand partnerships
Share a coupon book with a partner brand, with a term sheet stating which part of the cost each one pays.
See the coalitionAt your register
API integration with the POS and ecommerce, without changing the register system.
See loyalty at the POSIn grocery
The supplier's promotion, for the member who will use it.
See grocery
Questions
What people ask about supplier promotions.
For trade, loyalty and finance teams at the retailer and the brand.
It is a promotion paid, in full or in part, by the brands that sell to the retailer. In a loyalty program it reaches the customers it fits, for example people who buy the category but not the brand, and each brand's contribution is recorded per campaign.
By a percentage agreed per campaign, for example 50% each or 100% the brand. Several brands can also take part in the same promotion, each with its share.
No. Retail media sells advertising space on the retailer's data; a co-funded promotion pays for a reward the customer gets at purchase. They complement each other: the audience can be the same, but here the brand funds the reward applied at the register.
Qurable calculates each brand's contribution per campaign and gets it ready for settlement. Qurable does not move funds: the retailer collects from the brand, as with any trade agreement.
It does not need to. The retailer builds the audience with its program data, and the brand sees its campaign result: how many members of the audience bought the product and what it cost.
With a control group: members of the same audience who do not get the promotion. The difference between the two groups is the incremental sales; subtracting the cost tells you whether the campaign pays off. In Qurable the control group is designed with each program.
Yes, if both brands are on Qurable. You share the coupon book with a term sheet stating which part of the cost each one pays; the other brand sees it read-only, accepts or rejects it, and once accepted its customers can use it.
Last reviewed
Further reading
Keep reading before launch.
The pages that show each piece in detail.
- ConceptPromotion engine
Discounts, coupons and bonus points decided at payment.
- ResourceMerchant-funded cashback
The same model with a bank and its merchants.
- ResourceMulti-brand program
Several brands in one program.
- ResourceCoalition economics
Who pays and who gets paid between partners.
- ResourceMeasure results
Incrementality, cost and ROI.
Want your suppliers to fund your promotions?
In a 45-minute demo we build a co-funded campaign with a brand from your category and show you where each party's contribution lands.