Call us: 1300 855 685

SEO Blog

Results From Using a Coupon Website

Share this:

Following up from the previous post about small businesses using Australian coupon websites, I have first hand results from a local business who has used one of these coupon websites.  I won’t name the business or the coupon website they used as it is not important – all of the coupon websites have fairly similar arrangements. Also, the actual number of coupons sold and the price charged have been slightly altered to keep this as generic as possible.  The important information is not in the number of coupons sold, but in the value the business gained by using the coupon website and the impact on its business.

What this local business was selling

  • $70 value of their service for $30
  • Limit 2 purchase per person
  • Valid for 6 months

The deal with the coupon website

  • For this particular deal, the coupon company kept 50% of every sale made so in this case $15
  • They pay you your 50% after you send them an invoice once half of the vouchers have been redeemed
  • From then on you invoice the coupon website monthly for coupons once you are over the 50% threshold
  • If a coupon is not redeemed then the site keeps the full 100% of the coupon sales
  • Money will be transferred by EFT within two business days of them getting your tax invoice

Results

The results for this business were 425 coupons sold at $30 each. This coupon website receives a minimum of $6,375 plus the additional $15 of all coupons that are not redeemed. Conversely, the maximum this local business can get is $6,375. The business owner was happy with the outcome – here’s what they had to say about the experience:

From the owner:

We have had a very good response, the first two weeks were very busy and most days we are getting between two and 7 vouchers come in. They have to phone and book this way you don’t get a whole heap at the same time when you are already at the busiest time of day.

For a business looking to get exposure I think it is a very good idea and many of the people will come back or tell someone else.

If you were a well established business and doing well I don’t think you would do it (use a coupon website) as it is a better deal for the coupon company but not a great deal for you.

However, for us I think it has been very positive and we have had great feedback from many new customers who did not know we existed and have said they will return and recommend us as, in fact some already have.

Should your business use coupon sites?

If you are a new business then these coupon websites can be a good way to spread your brand and get customers through the door as was the case with this local business.  For an established business, the best use of these coupon sites are to:

  • Sell excess or clearance inventory
  • Launch a new product or service

Summary

Coupon websites can be extremely useful in attracting new customers and spreading your business name. However, they can be extremely damaging to a business if they are not handled correctly. These are things you need to consider:

  • Dont discount your best products or your premium services
  • Make sure your business is able to cater for the spike in demand for your products and services
  • Have the coupon website forward you the customer email addresses
  • Ask for customers contact information and sign them up to your mailing list
  • Ask these customers to leave reviews on your Google Places page
  • Encourage these customers to come back again

If you have used any of these coupon websites, please share your experience with these coupon sites in the comments section.

About Andrew Webber

I'm an avid basketballer who is passionate about internet marketing. I love local SEO and helping small business get more visibility. I am also the founder of SEO Maverick. Find me on Google+ at +Andrew Webber
View all posts by Andrew Webber

Other Posts

There are 4 comments. Add yours.

  1. David

    Great insight into coupon promotions and I’m glad you have demonstrated the true cost per acquisition for this activity. Small businesses are paying a lot for the privilege of reaching the coupon promoters huge database in seconds, but I guess there is little marketing effort required for the business to implement this type of activity.

    It would be interesting to see what sort of return a small business could receive for more sustainable online marketing activity, such as SEO, an ongoing adwords campaign or a social media campaign.

    • There is definitely value in ‘borrowing’ the huge database of these coupon websites to increase your businesses visibility and make quick sales. However, for a long term, sustainable and defensible marketing and customer acquistion strategy, a combination of SEO, PPC, social media and email marketing is a must.

      Local businesses should focus on building their own customer database and marketing their products and services through email marketing and social media in the same way as these coupon websites. They have proven that these can be very successful channels, and have shown local businesses a pretty clear blueprint for how to do it as well.

      If local businesses captured as much information about their customers as possible, and started to build a community and customer base around social media and direct email marketing, they could have huge success in their local markets the same as the coupon websites. Except by building their own database and doing their own marketing, they get to keep 100% of the sales and 100% of the customers!

  2. Heloise

    Interesting post Andrew! Had no idea coupon companies profited so much from these kind of deals.

Leave a Reply

Your email address will not be published. Required fields are marked *

Connect

About Us

SEO Maverick is an Adelaide SEO and website design agency specialising in local SEO services. Director Andrew Webber has been in the online marketing industry for over 8 years and has worked with some of Australia's biggest brands including: Elders, Rural Bank, Cancer Council and Ouwens Casserly.

Featured On

Advertiser Logo1

Testimonials