'E-coupons' - online coupons offering generous discounts (50% and more!) off local goods and services, promoted by online coupon sites such as LivingSocial, WhyPay Full Price, Jump On It, Cudo, Spreets and I Love Coupons, and delivered to consumers' inboxes via email and social media - are taking the world of retail by storm. Savvy shoppers are seeking out online coupons before making purchases, and small businesses are willing to almost give away their products and services in order to cash in on the huge volume of traffic e-coupons can direct their way.
3 e-coupon pros
1) can exponentially expand consumer awareness of your brand, product or service
2) can quickly and extensively capture new leads and grow your database
3) can generate huge volumes of customers and sales.
3 e-coupon cons
1) can reduce the perceived value of your brand, product or service
2) can blow out your resources (Be aware! Many small businesses get such enormous traffic that they are unable to fulfil them!)
3) can cut your profitability (There's little or no margin left once you apply the discount and give the coupon site their cut).
1) Put a coupon on your own site - it's more cost effective, and you maintain control.
2) Use local print media, like the Redland City Bulletin, to promote print coupons. Or use localised Facebook communities like Redlands - Buy Local to 'shout out' your business and your special offers and to attract local consumers.
3) Promote product offers (not necessarily discounts) through other local online channels. Place a banner advertisement on Redlandsdirectory.com.au or advertise on the Redland Chamber of Commerce website or in their enewsletter.
3 e-coupon decision making factors
1) Will they help you achieve your specific goals? If your business is just starting out or you need an influx of NEW customers, e-coupons can be a great brand builder. If your existing customers take up offers, e-coupons could just erode your profits and even alienate your loyal customers.
2) Will they generate a high return on investment? E-coupons themselves can be a loss leader. In order to make them profitable you need to ensure you can convert coupon customers into repeat business or upsell them to more profitable products or services.
3) Will they support your brand image and convey your brand value? Will customers become loyal to the coupon sites themselves rather than to you? Will they simply wait for the next best offer? Will your existing customers become alienated by the cheap prices you offer to coupon site customers? Carefully consider the impact of e-coupons on your brand before implementing them as an element of your marketing strategy.
1) Limit the number of e-coupons on offer
2) Focus on upselling and incentivising repeat business so you have the opportunity to make a profit.
3) Insist on stringent Terms and Conditions to protect yourself from the onslaught of business you might receive.
Consider 'no repeat use',' only one coupon per household', or 'only available to the first x number of participants'.
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Redland City Chamber of Commerce's 18th Annual Business Achievement Awards
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