Running several social media campaigns we have found some interesting stats from coupon and online offer users. People using online offers or coupons spend more than those without. We have also discovered when people browse online they typically spend more than those who call in and order on the phone.
Deal-seekers, people who try to save money by using social-shopping sites like Groupon or coupon directories like RedPlum.com, may actually be even more valuable to the retail industry than people who buy product at list price. The reason – they spend more!
E-mailing opt-in’s (surfers providing permission for retailers to email them) conducting effective SEO (Search Engine Optimization) are the most effective ways to drive customers. Affiliate marketing and online ads (paid links to commercial destinations) are the third-most efficient way for consumer goods and services companies to get online business. Coupons are effective trackable affiliate links as users have to click on them and opt-in to get the deal, not just visit the site selling the product they want.
Coupon sites like RedFlag.ca deals succeed because the business of aggregating coupons is very strong. Each link is a CPA, or cost-per-action link, which pays out at a much higher rate than CPC, or cost-per-click advertising links. Retailers don’t mind the coupon carrying customers. While profit margins are lower advertisers effectively use coupons to increase the ‘average order’ of the customer.
WhiteCloud Marketing utilizes a social sharing platform names WhiteFire Social. WhiteFire delivers organic user based sharing for offers and introduces a leader-board highlighting top sharers. Rewards go top sharers with free product and other rewards. The tool is best set up as a custom app in Facebook but can be used on the web or a mobile device. Through sharing and recognizing top sharers WhiteCloud has seen huge increase (50-100% increase) in opt-ins and redemption of deals and coupons for its customers. This massive increase translates into more effective use of the marketing spend in attracting product sales and creating awareness.
All in all the online deal space is changing consumer habits. How we buy is increasingly happening in the digital space on the web and mobile devices.