Couponing Is Like Retail Roulette

Online, August 9, 2010 (Newswire.com) - Couponing in the millennium is not what it was in generations past; it is more like a game of retail roulette. This is demonstrated by the use of technology beginning with web portals like coupontweet.com. My motto is "if you are not using a coupon, store promotion or loyalty card than you are not shopping smart." Couponing once had the reputation of being for either low income shoppers or tightwads using coupons to save money. What a misconception...coupons are really about getting the consumer to try new products and winning customer loyalty.

When money is tight, people look for ways to cut costs, but they are not necessarily cutting back on eating out or purchasing clothing, grocery, and household items. Instead, many seek out the best deals. As the recession continues, the fight for wallet share has become more competitive. Unfortunately for the retailer, and fortunately for the consumer, deals are not difficult to find.

The use of coupons stretches back to the early days of the Coca-Cola Company and Post Cereals. Coca-Cola was transformed from an insignificant tonic into a profitable business by creating an innovative advertising technique. The key was in having the employees and sales representatives distribute complimentary coupons for Coca-Cola.

Coupons first saw widespread use in the United States in 1909 when C. W. Post conceived the idea to help sell breakfast cereals and other products. Today, more than 2,800 consumer packaged goods companies and retailers offer coupons for discounts on products and services.

For many years coupons required an investment of time and organization clipping them from the local newspaper Sunday insert or food section. Technology has streamlined the process with online sources for manufacturer and store coupons.

Group-purchasing portals are a popular way for stores to offer discounts. Websites like Groupon, 2 Buck Duck and Daily Deal have recently appeared offering daily deals at unbeatable prices through the power of group buying. The deal only works if a set number of people purchase the deal or coupon. Many require at least 250 people to purchase the coupon(s); deals can be anything from restaurant specials, spa services or 25% off at a clothing store. These websites drive thousands of customers through the door of businesses fighting to win market share.

Stores from Macy's to small boutiques offer coupons for signing-up on their websites. More companies are shying away from mailed coupons, instead creating a whole house strategy that includes e-coupons and text-message coupons with bar codes. Catalogers insert blow-out coupons in their catalogs.

Due to high unemployment and the current economy, the goal of the retailer is to get the customer into the store, and then to convert them into a loyal customer. Coupons do just that. The most popular coupons ask you to spend xyz and then give 5 to 10% off on your purchase. Stores from Target to Federated Department Stores offer these deals.

Many establishments offer deals on days when they are typically not busy. Salon 1800 in Chicago offers 30% off all services before 3pm Monday thru Wednesday; there are many deals like this. Restaurants offer fixe price menus and ½ bottles of wine. For the third summer in a row Starbucks offers a Treat Receipt, giving customers after 2pm an excuse to enjoy a Grande iced beverage for $2.00.

My father had a saying, "just ask, all they can say is no". In my experience, if you ask if there is a discount or coupon available, nine times out of ten it is possible to get at least a 10% discount. Coupons and loyalty programs are an opportunity for marketers to bring in more customers and entice them to try new things.