Lessons from Groupon

Over the weekend I listened to an interview with Andrew Mason, the founder of Groupon. He had some very nasty things to say about print advertising. We are squarely in Groupon's sights and he is coming after our business. He is very proud of the results his "model" is producing for small local businesses. He credits their proactive method of sending offers to customers for generating large responses. Later in the interview he talked about the importance of his people. His people are trained to convince advertisers to offer deep discounts to Groupon members. I believe these highly motivating offers are the key to Groupon's success and that if businesses made the same offer in print that the response would be even greater. The take away here is that we need to push clients to make compelling offers in their ads.

Keep Smiling, Keep Selling!

Thanks Jim Busch

Something for a rainy day

I was in the field with a rep talking to a garden center customer about the results of his advertising. He complained about business but did not blame our publication. It had been a very rainy week and his traffic was down. Since most of his display area was uncovered, few people came in wet weather. We suggested he tie a discount to the weather. We included a "Bring your raincoat" offer. Any shoppers who visited his store while it was raining earned a 15% discount. This discount not only brought in shoppers on rainy days but generated a buzz about the business among local gardeners. Since his overhead was the same when it was raining and when it was sunny, this coupon helped the cash flow of his business during our rainy summer.

Keep Smiling, Keep Selling!

Thanks Jim Busch

Coupon products

Coupon redemption rates are on the rise since the recession. The strongest coupons give something away, free is one of the most powerful words in any ad. Giving something away with the purchase of another item is a good tactic. The ideal item is something with a low hotel cost but which has value for the consumer. For example the most expensive part of a fountain drink in a restaurant is the cu which costs a few pennies, so the cost is low for the merchant. The consumer places the value of a drink at a dollar or more. A free drink with a meal is a great deal for everyone involved. Ask your clients about items with a high profit margin. These items will be good candidates for a coupon offer.

Keep Smiling, Keep Selling!

Thanks Jim Busch

Coupon marketing

A study conducted by the Promotion Marketing Association found that coupon redemption doubled in the first half of 2009. This is indicative of the changes in consumer behavior during the recession. Consumers are much more interested in value that they were just a few years ago. This is good news for the print industry. While Internet couponing is on the rise, print is still the best way to deliver coupons to the public.

When designing a coupon offer make sure it is clear and easily understood. The best possible coupon contains the magic word "Free". Coupons that offer a dollar amount off are also very effective. Avoid complicated offers and too many conditions which limit the redemption of the coupon.

Keep Smiling, Keep Selling!

Thanks Jim Busch