Photo Illustration by Laurel Daunis-Allen

Coupon Abuse

PROBLEM: A retailer discovered that gross margins in one of their departments were much lower than expected.

SIX SIGMA ANALYSIS: Coupon abuse was the culprit. It was discovered that customers could use as many coupons as they wanted on a single item in a transaction. In response, the retailer instituted stricter limits on coupons at the register, which resulted in a 45% reduction in coupon abuse.

TOTAL ANNUAL BENEFIT: $1.1 million

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