Of late coupon websites and marketing have become very popular however there has been recent backlash on when to use it for a business. Coupon marketing is the a form of marketing where a business attracts customers by offering discounts or rebates on coupon websites/networks. The promise that coupon websites is exposure to their list of followers and in return a commission is paid on each sale to the network. The biggest dilemma businesses face today is the usage of this form of marketing.
The challenge businesses face is the impact of using coupon marketing. Most facilities hope for three things, the customers using the coupons will buy additional items of value, the customers will be go through an up sell process for other products or the customers will return. The problems are when the customers don’t do any of the three expectations. Business not only loose on the price of the initial sale but also have to give a portion of the sale to the coupon network. You will see the feedback split down to the middle when it comes the pro’s and cons of coupon marketing.
I recently heard a story where a business feature on a coupon website found a loop hole. While their deal was being promoted on a network site, the coupon promoted a phone call and hence the owner of the businesses told potential customers that he would offer the same discount if they didn’t use the coupon. These are just a few scenarios where coupon marketing is met with so much controversy. The other problem is that consumers are trained to spend less, and the type of customer coupons attracts aren’t really what businesses want to attract. These are just some of the challenges businesses are facing today.
When I further dug into the coupon marketing world and businesses that used and did not use this form of marketing my results became very apparent. New businesses looking to attract customers used this form of marketing more than businesses that had an established clientele. When I interviewed a few businesses both online and offline I found a common answer. Businesses that had a massive following of loyal customers avoided using such marketing ploys and instead offered coupons internally as an up sell process. Yet newer businesses who had not tested other forms of marketing tended to use such coupon offers more often.
While coupon marketing remains a marketing dilemma for most, the timing seems to be a bigger question. Are you considering coupon marketing?