Groupon raked in huge coupon marketing success. Google wanted to buy, Groupon said “No”. Google Offers was born. Living Social (the firstborn), Kudzu Deals, Facebook Deals, Phoenix New Times…. The list of companies trying to compete in this seemingly new and fantastic coupon space is growing… and growing… and YES AMAZON jumped on board. Here is my first email from Amazon Local, received today.
And they just assume that you want to be in on their local coupon deal email list… But you can simply unsubscribe with the link at the bottom of their email. (Doing that now)
Haven’t you ever heard of Coupon Dependency?
This marketing tactic is very inciting for small businesses. It seems like a win because if you can still have a break even at 50% off then it’s worth it. Heck, if you can make a small profit as a restaurant by offering a $10 deal to get them in the door and spend more then it sounds even better. At the very least, they know that this marketing tactic is actually reaching an audience. But if you are having to double the price of your Phoenix Iron Gate to drop it down to get 75% off, then you risk loosing trust. And trust is the most valuable piece of any business.
Most marketing tactics for local businesses carry so much unknown, that small businesses can’t find that trust to take take the risk. This coupon deal produces real people. And nothing draws a crowd like a crowd. The down side… What crowd are you drawing? Are you drawing in the penny pincher, non tipper? Is that your ideal customer? Before you charge off down a road of coupon mania, you might stop and look at where that road leads. Coupons are not a complete marketing strategy.
- Daily Deals Losing Their Luster (arnoldit.com)
- Google Offers Quick Facts (dreamsystems)
- Thanks To Whole Foods Deal, LivingSocial Grew Five Times Faster Than Groupon In September (techcrunch.com)