Attention Mr. Merchant! If You’re Not Using Coupons, it’s Time You Reconsider Your Position :)

As I eased into my day today, I came accross a short article published on Internet Retailer that read “Consumers `clipped` 92% more coupons from the web last year, study says”.

When I first read the article I wasn’t very surprised to hear the stats. In fact, if you live on planet earth, you know we are going through one of the toughest recessions in recent history and that people have, for better or worse, been forced to “save”. Old timers like my father in-law chuckle at the notion that economic distress and recessions have pushed consumers like generation X’rs to become more price conscious and thrifty in their spending. I can see why this would amuse him. Here you have a gentlemen well into his 70's, who's weathered all types of economic conditions; where in my case, my generation got to experience and weather what I like to call; “a period of wretched excess and abundance”. Needless to say, a recession has forced my generation to start looking at things differently and this recent report only adds to the validity that a new breed of thrifty consumers and buyers are on the horizon. Merchants who don’t adequately prepare for this type of consumer may miss the boat.

As a managing director of business and affiliate program management at Andy Rodriguez Consulting, it’s my job to ensure that we not only manage our merchant’s accounts adequately but that we stay vigilant on new trends and markets to better support our merchants in their online endeavors. One area that merchants should not ignore is the reality that this is not the time to dismiss or avoid using coupons or coupon affiliates on their programs. I’ve had countless conversations and strategic debates with merchants on whether or not they should use coupons and I’ve heard every reason why they shouldn’t, from:

-Damaging their brand and how they will be perceived in the market place
-Accustoming users to only buy their product when coupons are offered
-Fearful that the coupons will seriously hurt their margins

I can keep adding to the list of “top coupon woes and worries” expressed by my merchant but I’d rather offer a basic perspective on how coupons can actually help a merchant and not hurt an online business.

If you happen to be an electronics merchant reading this article or do business in a very competitive vertical, you too can benefit from coupons. The fact is we don’t need to read an Internet Retailer report on the growing trend of coupon usage to validate the reality that consumer buying habits are changing and that their buying habits are even more targeted than ever before. Online retailers that don’t accept or adapt to this fact are going to get creamed in the New Year!

Now please note that I am not insinuating that all online retailers need to give into the coupon path without giving it much thought. I don’t expect for online retailers to “give away the house” or lose money on transactions because coupon usage is on the rise, however what I am suggesting is that online retailers need to face the fact that most consumers are looking for deals and anyone who offers them a value driven offer/coupon is going to attract more sales, period. So here are just a few facts that you may want to consider and apply in your marketing plans for 2010:

1. Use coupons or offers on the slowest day of the week. Sporadically offer coupons on some of your slowest days and help boost your sales.

2. If you are doing business in a highly competitive, low margin vertical like electronics, use targeted coupons on products with higher margins.

3. Coupons don’t have to be considered loss leaders, they can actually increase the amount spent by your site visitors, therefore increasing the average price per sale.

4. Most consumers using coupons online generally pick up a few extra items if the online merchant positions the up sells correctly and adequately throughout the site and during the checkout process. If you don’t know what I am referring too, call me directly at our firm at 305 412 3512 and I explain it to you.

5. Coupons that are strategically positioned and offered during slow times of the year can offer a nice push in revenue where otherwise you would have incurred potential losses.

6.If your online e-commerce business has an affiliate program, consider offering affiliates an exclusive coupon only available to affiliates on the program, similar to the affiliate program we manage BoatShoes.com. The value behind this idea is that any traffic an affiliate sends will receive the coupon or offer, allowing you to acquire potentially a new customer that otherwise would have been far beyond your reach.

7. Offer coupons privately to your customers and make them feel special! There’s nothing I like more than to get exclusive offers or deals. Coupons and offers go a long way with customers and add juice to your brand loyalty strategy over the long run.

8. Use coupons to entice old customers to come back. Make this exclusive and consider it as part of your marketing budget to retain and keep good customers.

9. Use coupons and offers on discounted products or excess inventory. As my father used to say: “One man’s junk, is another man’s treasure”.

10. Offer a dollar off and not a percentage off on a product. For example, instead of using 5% off, use $5.00 off.

A new breed of thrifty consumers are slowly taking shape and determining the direction of where the market place is going. What once was “un-cool to do”, is now being considered “chic and smart”. If you’re marketing plan and budget doesn’t include the implementation and positioning of coupons to better service these savvy buyers, you are going to lose out big-time!

Tell your friends about us!

Emilio Yepez
E: emilio@arcmediaconsultants.com
E: emilio@andyrodriguez.com
P: 305 412 3512
C: 305 389 8955