www.rewonline.com   Call us (800) 821-9153  

10/28/2010

- 4.80 - 8 min

Expectations Important For Coupon Campaigns

Courtesy of The Center For Media Research


Social couponing, in which online coupon offers go active once a minimum number of registered users sign on to them, has become a hot new promotional platform, at least for Groupon and Living Social. But new research finds that about a third of the merchants extending those discounts may find them a very mixed blessing.

According to study of 150 businesses by Rice University's Jones School of Business, of a coupon promotion by Groupon, those coupon campaigns were unprofitable for 32% of the businesses that ran them. And more than 40% of the response group said they would not run another social coupon promotion again.

According to Jones School associate professor Utpal Dholakia, the author of the research, the profitability of a coupon promotion can be measured by two main criteria: whether customers redeeming the coupons spent more than the coupon amount, and what percentage of those customers came back again to shop without a coupon offer.

Those survey respondents who said the campaigns had not been profitable for them reported that only about 25% of redeemers spent more than the face value of the coupon. They also said that about 13% of those coupon holders came back a second time to shop at full price.

The 66% who reported these promotions as profitable said that 50% of redeemers spent more than the value of the coupon, and 31% returned to become customers again at undiscounted prices. But even some of those businesses who reported successful promotions said they would not be likely to run another campaign on the platform, because the offers did not draw the right customers.


Dholakia found that marketers who set a ceiling on the number of coupons offered through the platform tended to see more demand. However, only 11% of the businesses studied in the survey imposed such coupon caps, and those that did set them relatively high at an average of 2,190 offers.

Foodservice businesses sold significantly more coupons than other types, the survey found:

Restaurants made up the largest single business category in the response pool (32.7%)

Educational services (14%)

Salons and spas (12.7%)

Tourism (8%)

Dholakia writes in the study that "... there is disillusionment with the extreme price-sensitive nature and transactional orientation of these consumers... they are not the relational customers that they had hoped for or the ones... necessary for their businesses' long-term success... "

The report concludes that coupon promotions can draw large customer surges into a business, but many of these will be either new users or price-conscious shoppers, unaware of the need to tip service employees or to tip based on the undiscounted price. Businesses need to consider that these consumers are bargain hunters. By nature they are frugal.

For additional information about the report, please visit Promo Magazine here.


Categories: Articles  


Published by:

REW Editor
gustavo.pirela@rewonline.com





Bad
Rate as 5 star
Good


Share this content using:


Related Articles



Count Leonairdo's House of Horror
If he needs equipment for his restaurant, we'll be happy to help. ...

See more ...


Categories: Articles  
Published by: REW Editor - 10/28/2009

- 4.77 - 1 min







What's Lurking In Your Thanksgiving Day Bird?
With the upcoming holiday season approaching, it is important to keep food safety in mind. No, not just in the context of wearing goggles when destroying things, but also when looking out for the creepy crawly germs. Holidays should be a fun time, ...

See more ...


Categories: Articles  
Published by: REW Editor - 11/03/2010

- 4.34 - 4 min







Broken Equipment Isn't the End To Your Counter!
When built-in equipment fails, it can be a pain to find a good replacement. Often, the holes left behind are odd sizes, or the counter material is not up to code. Finding something to fill the hole can feel like more trouble than it's worth, leading ...

See more ...


Categories: Articles  
Published by: REW Editor - 07/08/2011

- 4.89 - 4 min







The Top 10 Social Tools for Restaurant Owners
Getting traffic in the door... It may be the most difficult part of the foodservice game, and the ways to make it happen are rapidly changing. While word-of-mouth is still the reigning champion in promoting your business, the forms that it comes in v ...

See more ...


Categories: Articles  
Published by: REW Editor - 07/26/2011

- 4.76 - 19 min







Wendy's Launches Hispanic Campaign
byKarlene Lukovitz, Media Post Marketing Daily Wendy's International, Inc. is rolling out a new series of television and radio commercials targeting the U.S. Hispanic market. Themed "Sabor de Verdad," roughly translating to "Real Taste," the Spa ...

See more ...


Categories: Articles  
Published by: REW Editor - 11/02/2010

- 4.23 - 7 min










REWrite Blog

Welcome to the REWrite blog site. We created this page to inform and entertain you. We like to visit our customers and eat good food - check out our restaurant videos. We also like to share fun events, informative articles and funny stuff about our staff here at REW.

So, take a few minutes and peruse through our site, and feel free to leave ratings and comments . . . we love those! Don't forget to check back often as we like to keep you posted.

Filter by category.
Articles60
Restaurants48
REW35
Vendors17
Events11
Food9
Funny6
Infographic5
Web4
Interviews3
Social Media3
Tutorials3
Customers1

Most popular (top 5)
Restaurant Equipment World Visits Sweet Lics Treats & More
Restaurant Equipment (REW) Visits DoveCote Brasserie
Restaurant Equipment World (REW) Launches NEW Spanish Version of Website
Restaurant Equipment World (REW) Visits Omelet Bar
Restaurant Equipment World (REW) Visits Valisa Bakery

Top rated (top 5)
Restaurant Equipment World (REW) Launches NEW Spanish Version of Website
REW Visits Tibby's
Restaurant Equipment World (REW) Visits Cocina 214 Mexican Kitchen & Bar
Restaurant Equipment World (REW) Visits Valisa Bakery
Restaurant Equipment World (REW) Visits Croissant Gourmet

Editor Pick
Restaurant Equipment (REW) Visits DoveCote Brasserie
Restaurant Equipment World (REW) Visits Kyoto Sushi & Grill
Restaurant Equipment World (REW) Visits Omelet Bar
Restaurant Equipment World (REW) Visits Duffy's Sports Grill
Restaurant Equipment World (REW) Visits The Golden Knife Chop House
Restaurant Equipment World (REW) Visits RusTeak
Restaurant Equipment World (REW) Visits The Osprey Tavern
Restaurant Equipment World (REW) Visits Bosphorous Turkish Cuisine
Restaurant Equipment World (REW) Visits RiverGrille On The Tomoka
Restaurant Equipment World (REW) Visits Cocina 214 Mexican Kitchen & Bar
Restaurant Equipment World (REW) Visits Antonella's Pizzeria
Restaurant Equipment World (REW) Launches NEW Spanish Version of Website
Restaurant Equipment World (REW) Visits Croissant Gourmet
Restaurant Equipment World (REW) Visits Valisa Bakery

      

USA Headquarters
2413 N Forsyth Road Orlando FL, 32807
Toll-free: (800) 821-9153