Internet coupon site RetailMeNot was up 57% from a year ago on Cyber Monday. CouponCabin was up 65% from last year. BradsDeals.com reported their traffic had increased by 174%, receiving nearly 16,000 visitors an hour!
New entrant into the coupon arena, Groupon.com , where local merchants offer coupons that are realized when enough people go on line to redeem them has saved its users $39,497,624 through using 910,776 “Groupons.”
The stereotyped coupon-cutters; mostly women prepping for their trip to the grocery store. Gone! And the stereotyped process: someone sitting at a kitchen table with the “circular” in one hand, and one of those humongous kitchen sheers cutting along the dotted lines. Gone! Gone too, is the taboo of looking for a good deal.
This USA Today article states that one-third of all internet shoppers in October used a coupon. This article suggests that a coupon strategy must now be a staple of merchants or they are at a “clear disadvantage” according to Loren Bendele, CEO of Savings.com.
It’s an interesting idea. I personally love the hunt of the coupon. But the question is this, if a “percent off” going forward is almost always available via the searchable coupon, what does that say to the consumer about the published pricing? Is everyday one of those fictional “white sales” where you get a sense that prices are falsely inflated so they can be periodically deflated for the great white sale deal?
Clearly shoppers need a break this holiday season. Let’s hope merchants are really giving them one. We all need a little “Miracle on 34th Street” goodness this season, where the merchant’s belief that doing the right thing for their customer is in the best interest of the business.
A very sobering line in that USA Today article I reference above is that living through these economic times has behavior-modified all of us as consumers in one manner or another. Our coupon hunting and cost cutting habits we are developing now could stay with us for the long-haul…just like those folks who lived through the depression. It will be interesting to see how merchants continue to adjust and modify their pricing and coupon support, even after this holiday season is over. My two cents: it will separate those who care with those who opportunistically cut because this ’tis the season.
What do you think?
Jeanne, you said,”Living through these economic times has behavior-modified all of us as consumers in one manner or another. Our coupon hunting and cost cutting habits we are developing now could stay with us for the long-haul…just like those folks who lived through the depression.” Interesting comment and inline with some survey results from Money Magazine that I detailed in a previous FIX post, “The Great Recession, Things are Different Now.”
http://www.mpdailyfix.com/2009/04/the_great_recession_things_are.html
I agree traffic is way up, however, there are many consumers and businesses who are left out locally.
http://www.mingamo.com offers local coupons in the San Jose area and is expanding, however, it still is a difficult market for the small business to compete and for companies like Mingamo to earn market share.
The sites mentioned in the article do cater to the more web savvy consumer who buy national brands, but there are consumers who are looking local for coupons and are not finding them.
Small business have to weigh the costs to compete with these national chains and these sites have not established themselves on Main Street. Their cost to supply coupons are much higher as they not only have to offer a discount or incentive but also have to pay to distribute the coupons. MINGAMO is offering an inexpensive way for them to get their coupons in the market just as RETAILMENOT, COUPONCABIN, and BRADSDEALS are providing coupons of national brands.
As a marketing strategy local businesses should offer coupons to gain new customers, give incentives for customers to return, and create REVENUE during slow days, weeks, or periods. A simple example of this concept is restaurants are typically slower on Tuesdays. Rather than shut the doors, the restaurant could offer coupons on Tuesdays only. This also works for most service businesses.
Small business would argue that it moves higher paying customers to buy on off days, however, the proof is at the end of the week when they tally total revenues.
Bottom line. Coupons do help drive business. Small business needs to take a serious look and change their thinking or they won’t compete with the national brands.
Do we really want what Hollywood showed in “Demolition Man”, Taco Bell winning the “Fast Food War” and being the only restaurant left standing?
Michael Fahey
Mingamo Media LLC
Paul,
Your astute observations in your post are syncing up with what continues to be validated in research, media reports and consumer behavior. It is interesting to watch during this second holiday of the recession, how the “save” and “caution” behaviors are becoming more entrenched and wider spread – especially through demographics who wouldn’t have uttered the word “coupon” before. It’s sobering. Thanks so much for your feedback.
Michael,
I agree that local businesses have not yet embraced this electronic medium for giving their customers a bit of a break on their pricing yet.
Small business has such a keen opportunity right now to stand out in the marketplace with customers by adjusting and modifying swiftly to changing consumer needs and behaviors – because they are more agile. I like your idea of really understanding the purchase ebb and flow of the business, and then draw customers in during the slower times with a coupon offering.
I’d assert that in addition to offering a discount, small businesses can use this time to cement an emotional bond with their customers by offering uncommon acts of kindness. For example, Umpqua Bank, which prides itself on running each store as a local community center, offers “movie night.” They play kids movies, make popcorn and pull customers in. This type of non-commerce related gesture, in addition to price related help will be long remembered after these times have passed. Again, embracing their agility and ability to do creative gestures, this can be a great opportunity for small businesses to shine.
Yes, I’ve noticed shopping online has definitely increased this year. Even my mother and grandmother have discovered some pretty amazing deals online this shopping season.
1. Often we forget the little guy, the SMB, in our discussions of the comings and goings of the Internet marketing industry. Sure there are times like this when a report surfaces talking about their issues and concerns but, for the most part, we like to talk about big brands and how they do the Internet marketing thing well or not so well.
http://www.onlineuniversalwork.com
Often we forget the little guy, the SMB, in our discussions of the comings and goings of the Internet marketing industry. Sure there are times like this when a report surfaces talking about their issues and concerns but, for the most part, we like to talk about big brands and how they do the Internet marketing thing well or not so well.
http://www.onlineuniversalwork.com