Business strategies using Deals and Coupons

Business strategies using Deals and Coupons

The use of Deals and coupons need not be used simply to drive sales. There are other business strategies that can be achieved leveraging the dynamics of deals and coupons. Here are but a few:

 

-Tracking and Measuring: an effective way of measuring the success or lack thereof of a marketing campaign can be achieved using deal codes. Using different codes for each campaign can provide the data needed to determine which campaigns are working and which are not.

-Retargeting: getting consumers BACK to making that purchasing decision once they have abandoned the shopping cart or purchasing page can be done through the use of a deal or coupon. Providing the consumer with a deal/coupon to buy now, will increase sales from abandoned consumers.

-Reward Loyal Consumers: Why provide deals to customers who are already loyal. They will keep buying from you at full price so no need to give them a deal, right?! Well, the retail world is a far more competitive place than it was pre-ecommerce. It is a lot harder to keep consumers loyal to your store/brand nowadays. As such, a less arrogant approach would be effective. Provide those top loyal customers with deals once and a while and show them your appreciation. These little gestures will help keep them coming back and paying full price but will also aid in them referring a lot more business to you.

-Engage Partners. (not affiliates..PARTNERS). One of the surest strategies at reducing marketing costs and effective lead generation is to engage in strategic partnerships and leveraging them to help distribute your marketing and sales message. Provide such partners with specific and exclusive deals and offers for their own audiences. Set appropriate deal parameters like quantity limits, time limits and commissions to the partner and ask the partner to promote the offer to their audience. The cost and effort in using this distribution method is far less and the results far more effective than most other means of marketing.

-Engage the Corporate market: Deviating a little here.. but worth it. The following is not for the non-committed. The marketing and HR departments of large corporations order an incredible amount of employee incentives and gifts throughout the year, especially during the holidays. 10,000 Starbucks gift cards? Yup, no problem for some companies. Deal providers, in my opinion, are missing a massive opportunity within the corporate world. They need to engage with both Corporations directly and Incentive companies in order to have their Deal certificates and vouchers used by this market. How will margins work? Simply view the corporation as an affiliate or another distribution model and let them buy the voucher at a discounted price point. Daily Deal companies are well suited for the corporate incentive market. The incentive market in Toronto, Calgary and Vancouver is certainly very competitive and I suggest Teambuy, Wagjag, or Buytopia to look into it. Others are not ready for the corporate world yet. In Montreal, it is less competitive because of the language dynamic and this is where a company like Tuango can really capture the market and create a healthy stream of revenues. Other competitors in Montreal may be Teambuy, Goyub and CityLinked, but that’s about it. I do not see Groupon or Living Social entering this market in Canada anytime soon. More on the corporate market in another post.

 

There is more that can be accomplished, business strategy wise, using the deal/coupon format. Utilizing several methods will impact data from sales and perhaps enhance sales effectiveness.

 

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