Below we’ve outlined the basics behind four of the most popular outlets for multi-media coupon distribution and redemption.

1. Text Messaging Coupons

What are they?

Text message coupons are virtual coupons sent to a subscriber’s cell phone in the form of an image (barcode) or text message. To redeem the mobile coupon, a customer would need to show their phone to the cashier so that the bar code can be scanned, or show the text messaged coupon at checkout.

The Benefits

• Customers always have their cell phones with them.
• Messages can be sent out instantaneously, and the message is understood immediately.
• Customers who don’t use their email regularly now have another way to receive discounts and deals.
• The price structure for text message marketing is much lower than many other digital and print media.

Potential Drawback

Text messages can quickly become disruptive if the content isn’t consistently credible and useful. A text message-marketing program must earn (and keep) a reputation for being highly beneficial to the customer.

2. E-blasts Coupons

What are they?

E-blast coupons are direct email marketing messages that “blast” out to your database of email subscribers.

The Benefits

• With email marketing, you can easily track coupon redemptions and monitor the open rate (the number of emails that are confirmed to have been opened by the recipient.)
• Increased brand awareness. Customers can spread the word about your brand with the “forward to a friend” feature; the buzz builds exponentially, and you don’t have to lift a finger.

Potential Drawback

Email coupons cost more to send than text messages, and the customer must have a working printer in order to redeem their savings. Also, some customers may not ever receive the messages due to SPAM flitters or other email viewing issues.

3. Groupon.com

Every day, Groupon.com sends out an email featuring one incredible local deal. A subscriber who wants to get the deal must buy it before the offer expires at midnight. If it isn’t purchased by a minimum number of people, the deal for that day is canceled. Because Groupon guarantees the business offering the Groupon deal a minimum number of customers, the discounts that are offered are one of a kind. Groupon can generate a tremendous amount of attention for the featured business of the day and provides an incredible opportunity to tell a very large audience what sets your brand apart.

The Benefits:

• Retailers can set a minimum number of purchases to increase their buying power.
• People will often repost on their Facebook pages and forward the deals along to their friends.
• The Groupon deal of the day is often a popular topic in conversation; it’s a story that people like to pass along.
• A large audience is listening for what you have to offer.
• As everyone must buy the Groupon during the same 24-hour period of time, you’ll know how many Groupons were purchased so that you’re able to anticipate demand.

Potential Drawback

Groupons do not have to be used the same day they are purchased, so it’s important to have a plan in place for controlling and managing the response your Groupon generates. You need to be able to allow for large-scale redemption that won’t hurt your bottom line or the customer experience.

A few ideas for Groupon.com offers:

• Tell a story: use this opportunity to provide current and prospective customers with a powerful reason to believe in your brand. For example, if you want to highlight your catering services, create a Groupon that features your best catering offerings at a great price.
• 50% OFF a holiday dinner for four. Make sure you have margin built-in and enough staff to support a high demand.
• A signature or commonly used product. Buy it by the caseload if enough people signup for your Groupon to help ensure that you maintain a margin

4. Coupon.com

What is it?

Coupons, Inc. is the “leading U.S. provider of consumer-printed coupon marketing and technology solutions.” (couponsinc.com). They provide a web module that can be built into store sites for easy management of vendor coupons.

The Benefits

• Customers who typically base their purchasing decisions on the coupons they clip can now find all the coupons in one place—your website.
• It’s easy to track coupon redemption with the built-in features that coupon.com provides.
• A system for limiting how many coupons a customer can print is included.

Potential Drawback

Customers have to be invested enough to remember to go to the web site and wade through offers to find the ones they care about, rather than having a text or email coupon come to them with just a few really great deals. This is for die-hard coupon-clippers, and won’t attract new store visits from other shoppers.

Interested in developing a multi-media coupon program? Call or email me today.

We’ve seen some recent research conducted in similar sized markets with similar subscribers – and it’s not pretty.

We’ll never know unless we speak with each of the 12,000 subscribers but if the insert ad doesn’t really look unique or different from the other inserts in the same newspaper – it’s very likely that less than 3,000 subscribers will actually view the front page of the ad and fewer than 1,000 will open up the ad to see what’s on page 2. Those numbers drop when the newspapers are “Pennysaver” style or free distribution newspapers. In general, many of those that do read print ads are looking to see what the sale items are on page 1 to decide if it’s worth an extra shopping trip to pick up those items (which are traditionally low gross margin items).

It’s not uncommon for a single store retailer in this type of market to spend upwards of $4,000 a week to get 12,000 ads in the newspapers. In rough numbers, that’s 33 cents once the design, print and distribution fees are tallied.

Print ads are vitally important and if the true cost is close to 33 cents per copy, you need to make sure that you improve your readership ratios by having an attractive ad with significant appeal.

Now, let’s shift gears from print advertising to web advertising.

What does it cost to market the same ads to 12,000 shoppers? In most cases less than a half cent per ad – and in most cases, less than that.

But, can you be sure that 12,000 and not 12 people are viewing the ad on the web? Absolutely!

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Check with your IT staff today to see what web analytic tools you have to measure your web penetration.

Important: If you hear that you have web analytics through a third party provider (e.g. Google Analytics) – ask to see specific, measurable information that is helpful to your marketing efforts.

An interesting test to take to see if you have the necessary tools -

Ask to see the following information on your web traffic from today :

1. Number of unique visitors vs. repeat visitors on your website today
2. Average length of time for your site visits
3. The top 10 cities visiting your website today
4. A printed copy of your homepage today showing the areas of the page that were “clicked” today
5. The number of visitors to your site this morning at 8 am and who those visitors were, what they looked at, where they entered your site and where they exited your site.
6. How many visitors came to your home page and left – without looking any further (bounce rate)
7. How many visitors were referred to your website from another website – and what are those websites?
8. How many customers saw your e-blast sent out last week and of those customers, how many clicked on the offer or printed the offer?
9. What are the top 20 keywords used on search engines to find your website today?
10. What are the three most popular screen sizes, browsers and search engines used on your site today?

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Cost? In general, you can buy the best analytic tools on the web (user friendly, intuitive) for under $50 a month. Don’t be told that you can’t get the web analytics you need because they won’t work with your web hosting company, or that reviewing the information will consume too much time each day.

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Screen ResolutionIdentities ReportPage Views By Month & YearGeographic MapVisitor Click Path DetailGeographic InformationMonthly Return VisitorsUnique Visitors By Month & YearBrowser UsageYou’ve operated your business for many years and never really known about readership levels of your print ads. Don’t wait another day to get the detailed information on readership levels of your website, web promotions and web ads.Each morning I review all the data from just 6 (six) of our Supermarket web customers and a thorough review of pertinent information should take less than 10 minutes a day. And…. if you’re too busy to review it, download the information to EXCEL and review the data later.

For less than $50 a month – it’s well worth it.

Have a great week.