COUPON WEBSITES

Also called, “Deal of the day” sites Have become extremely popular in the last 2- 3 years As internet access became common place these sites became common Coupon Websites really took off as smart phones grew in popularity – But, why?

COUPON SITES Popular coupon sites

How Deal a Day Sites Work Think of these sites as the “Costco” of service business Costco has become so popular because consumers get a deal, due to the volume they buy These coupon sites offer a lower deal if they sell a given number of “deals” – For example: A buffet will offer 50% off their price if the site is able to sell 200 deals

How it works Unlike traditional advertising, or direct mail flyers, there is no upfront cost paid by the business The business will split the proceeds with the coupon site if enough customers buy the deal

Advantages to using Coupon Websites Deals Like any promotion, the goal is to attract more customers to your business who are seeking a “deal” Exposure These deals are particularly popular with new businesses that are looking to attract customers they would have not necessarily have gotten Up Sell When customers are in the door, you are able to sell them other products that your business offers that they would have not necessarily have gotten – Free Jr. Bacon Cheeseburger at Wendy’s

Why not? It’s so cheap!

Advantages Referral Systems – These sites will often give incentives to get others signed up for their websites – For example, Groupon offers $10 for each friend you get signed up for Groupon – This ensures more s, more information collected, more money collected by businesses and the website

Advantages Free Secondary Research for Businesses – To get deals and sometimes to see details, sites require you to enter in your personal information ( , age, sex, etc.) – Businesses are given contact information on who has clicked on their deals, how many purchased, what other deals they have bought, etc. Information is sent directly to your target market – ed new deals, deals you may be interested in, top 20 lists, etc.

Disadvantages Merchant Negative perception for your business if the coupon does not sell Possible that too many people purchase – Everyone shows up to your restaurant on the last night before the coupon expires Cash in hand before service is provided Consumer Spending money on coupons that you never use Buying products you don’t need Businesses not following through Wine House Cleaning Addicting = $$$$$$

Satisfaction Guaranteed Even though purchases online have become more popular, people are still apprehensive buying online These sites guarantee satisfaction with the service you are purchasing

Coupon Site Exploration! Open up – Coupon site exploration assignment You will be going on two of the sites that we talked about today and research the deals they offer today