Since the launch and explosion of Groupon and Living Social, everyone is getting into the coupon arena. Coupons as news? Not really. A new use for coupons? Maybe. The rising wave that is carrying companies such as Living Social to new heights and a recently-announced $400 million in funding is simple word-of-mouth marketing powered by social media.
Since the launch and explosion of Groupon and Living Social, everyone is getting into the coupon arena. Coupons as news? Not really. A new use for coupons? Maybe. The rising wave that is carrying companies such as Living Social to new heights and a recently-announced $400 million in funding is simple word-of-mouth marketing powered by social media.
Does couponing work? Yes, marketers know it works. We’ve been doing it since the dawn of marketing. We get consumers to sample our products and services by giving them a discount to try us. Sometimes it’s even a free sample. So why does a middle group who takes a cut of the profit suddenly create such hype around couponing? Social media has amplified viral marketing allowing all reference groups (friends, family, co-workers, strangers) to influence purchase decisions.
As consumers, it’s exciting to get all these great offers on a daily basis. It’s saving money we haven’t even spent yet on something we may not even need. It’s emotional. It’s a thrill. The collective buying power is amazing but can those companies making the offer deliver and what is the loyalty of the customer base in the future? I’ve already heard stories of huge disappointments in customer service as well as long wait times for deliveries. On the flip side, these intermediaries are driving small business growth at a time when the economy needs boosting.
As with any great idea, the competition comes fast and fierce. I recently received offers from Zagat’s new service, “Deal On.” No surprise that they would be a natural to enter the market. Daily Candy just launched “Deals Everywhere.” Really, do we need more daily emails from Daily Candy? I’m concerned that, as with so many other things easily duplicated, the market will be over-saturated quickly, the consumer confused and ever more noise and clutter to navigate. All this for $25?