The Truth About Coupons

The Consumer Cries, “Coupon!”How Will You Answer?
Kim Riedell, VP Client Development East, Commission Junction
Mike Ouellette, Director Publisher Development, Commission Junction

How Loud is the Cry?

How Popular Are Coupons?
TheFind.com began tracking search results for sale and coupon products…
30% increase
How often search results for sale and coupon were viewed compared to other search terms
--Siva Kumar, CEO of TheFind.com

Internet Retailer, May 12, 2009

Emerging Trends: Coupon/Deal Sites
Visitation to coupon sites continues to grow in this tough economic environment

Growth Year Over Year
Increase in economy related search terms, 2008 vs 2009

What about Commission Junction?

How Did We Get Here?
10

The Perfect Storm…Or Opportunity?

Turning Opportunity Into Profit
Embrace The Situation
Dispel The Myths
Think Strategically
Get in the Game

Embrace the Situation
Online shoppers are changing the overall retail economy.

Dispel The Myths
Myth #1: “You Can’t Control Coupons”
Plan for success!
Add negative match language to search policy
Limit redemptions
Purchase thresholds
Beware coupon stacking

Dispel The Myths
Myth #1: “You Can’t Control Coupons”
“My Coupon Went Viral…Now What?!”
The benefits of viral
You still have control

Dispel The Myths
Myth #2: “Coupons Damage My Margins”
Coupons are not an “all or nothing” option
Choose higher margin items for coupons
Use coupons to clear out inventory
Use custom codes and links
Limit coupon distribution, create an exclusive
Use vanity codes

Dispel The Myths
Myth #2: “Coupons Damage My Margins”
“Large home and garden retailer” and “large women’s retailer” both used coupon strategies to not only meet their margins, but wildly exceed them.

Dispel The Myths
Myth #3: Coupons Cheapen the Brand
Holiday ‘08 changed the landscape
Even high end stores are in the game
Must have a strategy to play

Dispel The Myths
Myth #4: “The consumer would have made the purchase anyway”
Create the urgency to purchase
Use expiration dates and redemption limits
Coupons close the deal in a reluctant shopping environment

Dispel the Myths
Myth #5: Coupons Don’t Create Long-term Customers
Coupons create customer engagement
Customers love the “treasure hunt”
Loyalty over time
--eMarketer, January 5, 2009

Think Past the Coupon
Does your user look like this?
Or this?

Think Past the Discount
It’s not just a discount strategy
New customer acquisition
Some of the coupon traffic sticks

Are You Ready to Get in the Game?
Develop your strategy
Give your users a reason to come back
Develop long-term advertiser relationships
Develop your strategy
Debunk the myths for your business
Realize it’s more than just a discount

Questions and Answers

Thank You For Attending!

The Truth About Coupons

by Affiliate Summit on Aug 13, 2009

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The Truth About Coupons — Presentation Transcript