the truth about coupons
DESCRIPTION
The current economy and the sophistication of online shoppers has created the “perfect storm” for online coupons. Come see how they can be effective for your program.Michael Ouellette, Director, Publisher Development, Commission JunctionKim Riedell, Vice President, Client Development – East, Commission JunctionTRANSCRIPT
The Consumer Cries, “Coupon!”
How Will You Answer?Kim Riedell, VP Client Development East, Commission Junction
Mike Ouellette, Director Publisher Development, Commission Junction
How Loud is the Cry?
How Loud is the Cry?
How Popular Are Coupons?
--Siva Kumar, CEO of TheFind.com
30% increaseHow often search results for sale and coupon were viewed
compared to other search terms
TheFind.com began tracking search results for sale and coupon products…
How Popular Are Coupons?
Internet Retailer, May 12, 2009
Emerging Trends: Coupon/Deal Sites
Visitation to coupon sites continues to grow in this tough economic environment
How Popular Are Coupons?
Growth Year Over Year
Increase in economy related search terms, 2008 vs 2009
What about Commission Junction?
How Did We Get Here?
10
The Perfect Storm…Or Opportunity?
Turning Opportunity Into Profit
• Embrace The Situation
• Dispel The Myths
• Think Strategically
• Get in the Game
Embrace the Situation
Online shoppers are changing the overall retail economy.
Dispel The Myths
Myth #1: “You Can’t Control Coupons”
Plan for success!
Add negative match language to search policy Limit redemptions
Purchase thresholds
Beware coupon stacking
Dispel The Myths
Myth #1: “You Can’t Control Coupons”
“My Coupon Went Viral…Now What?!” The benefits of viral
You still have control
Dispel The Myths
Myth #2: “Coupons Damage My Margins”
Coupons are not an “all or nothing” option
Choose higher margin items for coupons
Use coupons to clear out inventory
Use custom codes and links
Limit coupon distribution, create an exclusive
Use vanity codes
Dispel The Myths
Myth #2: “Coupons Damage My Margins”
“Large home and garden retailer” and “large women’s retailer” both used coupon strategies to not only meet their margins, but wildly exceed them.
Dispel The Myths
Myth #3: Coupons Cheapen the Brand
Holiday ‘08 changed the landscape
Even high end stores are in the game
Must have a strategy to play
Dispel The Myths
Myth #4: “The consumer would have made the purchase anyway”
Create the urgency to purchase
Use expiration dates and redemption limits
Coupons close the deal in a reluctant shopping environment
Dispel the Myths
Myth #5: Coupons Don’t Create Long-term Customers
Coupons create customer engagement
Customers love the “treasure hunt”
Loyalty over time
--eMarketer, January 5, 2009
Think Past the Coupon
Does your user look like this? Or this?
Think Past the Discount
• It’s not just a discount strategy
• New customer acquisition
• Some of the coupon traffic sticks
Are You Ready to Get in the Game?
Develop your strategy
Debunk the myths for your business
Realize it’s more than just a discount
Develop your strategy
Give your users a reason to come back
Develop long-term advertiser relationships
Questions and Answers
ThankYouForAttending!