I've become obsessed!

     

     Ok, so now that I've purchased two deals from online coupon sites Groupon and Living Social (both of which I've yet to use), I can't seem to stop researching them! And now all of a sudden information about these sites keeps coming to me! Coincidence?? <-- Insert creepy music here.

     Thankfully the powers that be are sending some cool articles my way. An article posted by fashionablymarketing.me.com, identifies 5 Key online retail trends that are shaping the way consumers save:

1. Daily Deals- no surprise there. Groupon alone is advertised on 7 out of 10 sites I visit. (I checked)

2. Name your own price- this is something I have never heard of before. Apparently companies like Gap allow you to make a sales offer for a particular item and the brand then makes a final offer you can either accept or reject. New to me but I doubt I would love to try this out! Think they'll reject my offer of $0.01?

3. Free shipping both ways- if ever you've shopped on Zappos or Clearly Contacts you would be familiar with this. More and more businesses are offering free shipping for customers, and free shipping to return the item. Anymore convenient and they'll offer to pay for it too

4. Mobile commerce- this is the newest of all trends, but is being quickly adapted by businesses, especially with Google's launch of the Google Wallet.

5. Social media sales- I'm kind of out of the loop here seeing as I don't have Facebook, but businesses are starting to integrate their online store with their Facebook page. What does this mean? Well that you can shop while looking at someone's trashy club pictures without ever having to leave Facebook.

     Who knows if these are the 5 major trends... maybe there are more or less. Regardless of the answer I now pass the torch, so you too can be plagued by online retailing!

Click HERE for the full article.

Yep, they got me again...

As I mentioned in my post  on June 7^th, I was looking at a manicure pedicure deal on Groupon. Sure enough I purchased it. A mani-pedi plus a massage for $45, you can’t go wrong! Or can you?

Due to my recent purchases with these online deal sites, I decided to do what any other online purchaser does..look at reviews. I looked at reviews and comments from an article on everydaymoney.com, and turns out I have more to worry about than my lack of motivation to actually redeem the deal. Other users have experienced poor service because the business did not have a sufficient amount of staff to handle the influx of people; or worse yet they’ve arrived to use their coupon only to learn the company has gone out of business. Some customers were shocked to learn how much money these coupon sites keep in profit from a purchased deal, whcih can be upwards of 50%. They were more willing to buy directly from the company so they don’t get cheated out of profit (very heroic of them).

In between all of these customer comments and complaints, I got a glimpse of what it’s like for a business to offer groupons to customers. Most were frustrated with the fact that the majority of coupon users do not live in the area. So the odds of them traveling to who-knows-where to pay regular price is very slim. One business owner shared her experience of having a groupon user sell her coupon to a customer who would’ve otherwise paid regular price, resulting in a lose of $30. All because the coupon user didn’t want to use it anymore... Ouch.

One comment that caught my attention, was when a groupon user said using their coupon at a restaurant or any other business changed their perception, causing the business to seem ‘cheap’. I agree, especially as this person points out there are not many higher end restaurants that you would use a coupon for. The article from everydaymoney.com also points out that sites like Groupon, Living Social and WagJag are changing the amount customers are willing to pay for products. We’re so use to being offered a deal, that paying regular price is becoming more and more obsolete.

Regardless of the amount of mixed reviews these coupon sites have received, they are growing in popularity. According to Forbes.com, Groupon alone has experienced sales growth from $30MM to more than $700MM between 2009 and 2010.

It seems like I could go on forever about online couponing as there is so much information out there. New articles and reviews are popping up faster than I can keep up with them.  So for now I will take a break from my Groupon research and instead treat myself to a nice relaxing manicure and pedicure. C’mon it’s well deserved! Besides, researching how to save money is hard work hehe.

Groupon Sucker

     

     Ok so the first thing you need to know about me is that I'm not a 'couponer'. I don't cut, print or tear anything off for a deal. Not because I don't want one, but mainly because I end up forgetting I have it and the deal will expire before I remember its taking up space in my wallet.

      So imagine my surprise when I purchase a $25 deal for unlimited boot camp for a month by Living Social. There was that voice in my head that said 'Karin, you know how this goes. You're not going use it', but I gave in especially when a classmate said she would go with me.

     That was back in the first week of May and I have yet to even email them to register, let alone find out when I can attend classes. Yep… that's the extent of my couponing. But I’m sure I’m not the only one who fails on the follow through with coupons. How many of us are out there? And do sites like Living Social and Groupon factor us in when they analyze their potential profits? The fact that I have purchased a product or service and did not use may weight negatively on my experience with the deal, and as a result the website.

     I started to think of ways for these sites to make it easier for us non-couponers to get the most bang for our buck. Maybe the company we’ve purchased our deal from should make a phone call or email to confirm purchase. Or there can be a tracking system to see who has used their deal, and if it hasn’t been used automated emails can be sent out if as a reminder.

     And then I started to think about the cost and hassle associated with implementing such systems. Can you imagine if 200 people purchased a deal from a small massage parlour and someone needs to call everyone to confirm that they’ll show up? Or having to input 199 tracking numbers so that one person can be reminded not to waste their money?

     Well when I think of it in those terms it just seems silly. Yes I would like to blame theses kind of sites and vow never to use them again, but it really boils down to me. If I want the deal, I’ll make the effort to go get it. After all, I made the effort to type in my credit card number. And clearly they’ve manage to structure their business in a way that gets people hooked. How do I know? I’m looking at a manicure and pedicure deal right now haha.

The F-FACTOR

     An article was emailed to me last night that I couldn’t stop reading. The online site trendwatching.com analyzed the effects friends, fans and followers have on consumers’ online purchasing decisions. They coined this phenomenon the “F-Factor.

     Trendwatch identified 5 key ways the “F-FACTOR” influences consumer behavior:

1. F-DISCOVERY: How consumers discover new products and services by relying on their social networks.
2. F-RATED: How consumers will increasingly (and automatically) receive targeted ratings, recommendations and reviews from their social networks.
3. F-FEEDBACK: How consumers can ask their friends and followers to improve and validate their buying decisions.
4. F-TOGETHER: How shopping is becoming increasingly social, even when consumers and their peers are not physically together.
5. F-ME: How consumers’ social networks are literally turned into products and services.

     In particular, the F-FEEDBACK made me think of the ‘like’ button on Facebook. I remember the first time I saw the ‘like’ button as I was browsing the online shop for Aldo and I thought, what on earth is this? So what if people know you ‘like’ something, what’s the big deal? But after reading this article I can see why businesses want consumers to share their ‘likes’ and dislikes about a product. Facebook has managed to capitalize on our need for peer approval by making it easy for us to click on one button and share our preferences with friends.

     I guess it’s not that far off from me asking a friend what she thinks of a dress I am considering purchasing or have purchased. And as Trendwatch points out, the influence peers have on our purchase decisions is not particular to our time, but the methods we have developed to make it easier for us to get the validation are. 

     Now I don’t have Facebook (yes it’s true and I have managed to survive), but I still find myself looking at how many people ‘like’ something I have considered purchasing. However, because my likes or dislikes aren’t shared through social media, I am less likely to not purchase something because only 2 people liked it. After all, in my case who’s going to know?

     Here is the link to the full article: Trendwatching- The F-FACTOR. It’s a lot of information but worth the read and will give you more insight into your purchase habits.

Bring on the Beer!

OK so I may be jinxing it, but according to the last two days of sunny weather, summer has officially arrived! What does this mean for me? A LOT of barbeques. There is nothing Caribbean people like more than getting together to eat, talk, hang out and yes, drink. 

What I couldn’t help but notice for the second time this weekend (yep I had two barbeques) was that the beer Red Stripe was being passed around. So I had to ask people why that is their beer of choice, seeing as it is a brewed in Jamaica and hard to find in Vancouver. I got a lot of, “This is what I drank when I was growing up”, or there was a proud Jamaican who said “There’s no other beer in the world!” But funnily enough, it was hard to get a concrete answer directly relating the taste of the beer to why they drink it. It seemed to be more a matter of habit or pride. When asked if they drink Heineken or Corona, I got all yeses, but when I asked if they would pick up a Heineken or Corona over a Red Stripe, I got a resounding NO. Mind you, the majority of this crowd was Jamaican so my unofficial focus group results are a little skewed.

Regardless, it made me wonder how much marketers tap into the nostalgic and habitual aspects of human behaviour to hook someone onto a product. Would I be so attached to Tide if they didn’t have commercials of mothers getting out those unruly stains of their children like I used to watch my mother do? Or switch to the brand Puffs tissues because they show the caring mother doing what she can to sooth a child’s runny nose; which in turn makes me miss the winter my grandma would meet me at the door with a tissue to wipe my nose.

In some ways it almost seems wrong. How dare these companies tap into my childhood memories and get me hooked on these products?? But as an aspiring marketer I must say I am impressed. It’s not something I overly noticed before but after my Red Strip focus group I am more aware of what I will now call the ‘nostalgic method of marketing’.

Kudos to those firms out there who have mastered this technique. Now every time I buy something I’m going to be searching my brain for what type of memory it may or may not be bringing to the surface. But for the company’s sake they better hope it’s a good one!