I’ve marketed my way through enough recessions to recognize the pattern; marketers stop playing games, and start spending their money very, very carefully.
In the past, that meant a lot of my ad budgets were switched to less-glamorous media like inserts, card decks, etc.
Today, the rush is on to find the most effective, affordable online media (hint: online ad buys seem stagnant). And while coupons are regarded by many as a relic of the pre-Internet era, a New York Times Magazine story says coupons are back - especially online coupons:
Its figures show that in 1998 consumers redeemed about 4.7 billion coupons. The number of coupons that manufacturers issued has gone up and down since then, but the redemption number fell steadily every year until last year, when it leveled off at about 2.6 billion. According to the Promotion Marketing Association Coupon Council, less than 1 percent of coupons are distributed digitally — which seems a little surprising given that coupons-on-the-Web companies have been around for years.
Perhaps it was the positive economic mood that held them back, but that’s changing: the online data tracker Hitwise says visits to a variety of thrift-focused sites are up by about a third over the past year, and the likes of Coupons.com and more recent entries like CouponWinner.com are lately reporting big spikes.
Good news? Bad news? Does it matter to you?
A little fiscal reality check is always a good idea (if the supposedly targeted ads on social network sites aren’t working, it’s time we moved them elsewhere). But the take-away here is simple: in the face of a shrinking budget, the smart copywriter offers their client a cost-effective alternative.
And while “everybody else is doing it” is hardly a killer business case for a promotion, it’s the kind of statement that opens a client’s mind (if not their checkbook).
Remember, in a recession, clients are often scared. That means they’re seeking value from their marketing efforts, and while coupons and promos aren’t glamorous, they’re cost-effective - and they work.
And in the case of online coupons - a largely untapped medium - it’s likely your competitors simply aren’t competing.
Keep writing, Tom Chandler.
Comments 5
“Old news.”, says a fan of http://www.retailmenot.com/.
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Posted 07 Aug 2008 at 4:48 pm ¶With less than 1% of the coupons being distributed online, I believe “old news” doesn’t yet apply. Someday, perhaps.
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Posted 07 Aug 2008 at 5:09 pm ¶One of my clients uses a coupon (code) in every monthly enewsletter we send out. I’m trying to convince another client to use them as we speak — this would be a follow-up email sent out after the customer has purchased the product and had time to try it. The coupon would be for their next purchase, which would help many customers get into the habit of ordering more product over the Internet (or so my theory goes…).
I think the biggest stumbling block is the digital nature of online coupons — you can theoretically use them over and over. I know there are ways around this, but from a client point of view it may seem overwhelmingly complicated.
The answer, of course, is to design back-end ecommerce systems to handle digital coupons more efficiently. But the whole supply/demand thing seems to be at a stalemate: eshops would likely use them if they were available, and programmers would likely create it if there were demand…
~Graham
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Posted 08 Aug 2008 at 7:03 am ¶Graham: If I could ask, what kind of result is your coupon-using client getting? If the numbers look good, don’t forget to leverage that information with other clients (respecting confidentiality of course).
Coupons aren’t exactly what you’d call a high-prestige/high-dollar gig for copywriters, so few seem to push them on clients.
Still, nothing endears us to clients like success…
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Posted 08 Aug 2008 at 7:42 am ¶Yes, I don’t think I would promote just “coupons” but they do come in handy for certain campaigns. As you say, they have proven success.
The one client that uses them has good success with them — I don’t know the exact numbers, but they are an added incentive for members to purchase other products. I do know that the success varies, as it always does, on other aspects of the offer as well i.e. new product vs. new deal on an old product, how much the coupon is worth, how wide of an appeal the particular product has, etc.
In the case of the client I am currently trying to convince, I did mention the success that coupons have. His position is that this follow-up email is going out to people who have already had a deal, so he is uncomfortable giving them another one (yes, I know, but that was his answer…).
But I at least have him thinking about it, and told him we could always split-test it later: without a coupon now, and with a coupon in the future if he is not happy with the initial response. What better way to prove the success of coupons!
~Graham
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Posted 08 Aug 2008 at 9:04 am ¶Post a Comment