Posts Tagged coupons
When will shopping become truly social?
Posted by Paul McSweeney in M-Commerce, Social Commerce, Social Media on July 16th, 2010
The concept of “social” shopping / commerce has been circulating for a few years, but the idea has yet to reach critical mass. Given how intertwined the purchase consideration process and social media have become, it is surprising that social shopping / commerce still seems to be in its infancy. So, if we aren’t yet ready for social commerce, what do we expect as we use social media to support our purchase decisions?
We expect to be inspired (awareness) – the April launch of Facebook’s Universal Like button and social shopping sites like Kaboodle and Woot! enhance our awareness of brands, products and services we didn’t even realize we even wanted…or needed. They allow us to browse brands and products without being tied down to any one retailer and importantly, they give us a window into what our friends think are must haves.
We expect deals (engagement) – you may not be a coupon clipper, but it’s hard to say no to a good deal. Social media has proven itself to be an effective channel for finding and sharing deals, promotions and coupons. The lure of exclusivity has buoyed deal-a-day services and made them increasingly attractive to retailers, manufacturers and social media platforms (e.g. Twitter recently announced its @EarlyBird service which will share time-bound deals from participating advertisers, Amazon acquired deal-a-day site Woot! in June). In fact, the promise of exclusive deals tends to be a key motivator behind why consumers “like” brands on Facebook or follow them on Twitter.
We expect a megaphone (advocacy) – social media gives us a platform to talk about the brands we love and the ones we want to make sure our friends avoid. A happy customer is a brand’s best marketer.
We may be conditioned to click on deals through Facebook for, say, a TV, but we aren’t yet fully on board with making our purchases through social media platforms. How do you think social commerce will evolve and when do you think making transactions within social media will be commonplace? Will mobile be the catalyst?
Smartphones are making retailers think again.
Posted by Paul McSweeney in E-Commerce, Facebook, M-Commerce, Online Marketing, Social Commerce, Thoughts & Opinions, Traditional Marketing, World News on June 4th, 2010
Asda, the UK supermarket chain owned by Walmart, launched a new “price guarantee” campaign a few weeks ago. This enables shoppers to access a price comparison website to check their overall spending during the store against leading competitors such as Tesco, J Sainsbury and Wm Morrison.
If a customer could have saved more elsewhere, the Asda site, operated by Mysupermarket.co.uk , will print out a coupon against future purchases to cover the difference, plus a penny.
According to Asda, about 15,000 people a day are now checking prices on the site, which covers about 70 per cent of Asda’s comparable products and demand had “surpassed expectations.”
Price comparison sites are not new. PriceGrabber, Shopzilla, and Yahoo Shopping have become an established part of the e-commerce landscape. But with the increasing adoption of web-enabled smartphones, the new challenge for retailers is how to deal with consumers who are able to check prices not just at home, but in the store too.
According to surveys, the percentage of smartphone owners that check prices through their devices, is increasing significantly. The shopper’s ability to check prices while on the move is also being enhanced by a new generation of mobile phone-focused search engines applications.
Shopsavvy and RedLaser, for instance, deliver comparative pricing information, and information on nearby stores, to anyone who uses their mobile phone camera to take a picture of an item’s barcode.
Retailers are reacting in different ways to the realisation that their customers could walk out to buy a product more cheaply elsewhere. Some say that retailers will try to obfuscate this by offering products that others do not sell, such as exclusive private label goods, or by creating bundles of products.
There will also be an increasing readiness among retailers to match prices instantly. One strategy, called geo-fencing or wireless marketing, is now being tested by a handful of retailers in the US. In the near future, it will be possible to have those messages triggered by a search engine to persuade a customer to complete a purchase – the digital equivalent of a shop assistant lowering the price or making a special deal.
When customers use geo-fencing, then it is safe to assume that they are pretty serious about buying something. Once they scan the product, the sharp retailers will offer a special offer right away to capture that purchase.
Retail is changing considerably. Levi’s have implemented customer-generated outfitting, as have Heels. Customers can match tops and trousers for example, and then share the images with their friends via Facebook to get their opinions. And now the rise of price transparency could put an end to the closed environment of modern retailing.
These digital initiatives may take us back to the oldest markets – where rival retailers call out the prices, and always prepared when necessary to haggle!
So, you as the customer, will finally be King!
Investment Funds target online shopping groups.
Posted by Paul McSweeney in M-Commerce, Social Commerce, Social Media, Social Networking, Thoughts & Opinions on May 25th, 2010
European venture capital companies are making a bet on online shopping clubs, with more than $377m invested in the fledgling sector over the past three years.
The latest addition to the growing list of buying club start-ups is Keynoir , a UK based business launched by two former founders of Kelkoo. Keynoir focuses on discount offers for “experiences” such as spa days and restaurant meals. The company raised £1.3m and say that 5000 users have signed up in their first full month since launch.
Online shopping clubs offer exclusive discounts on items from designer clothes or holidays to members who sign up on the internet. It is often a way for brands to dispose of excess stock in a discreet way, or for companies to drum up new business through special offers.
The recession has helped boost business for many of these clubs. Not only are people looking for a bargain, but designer brands have had more unsold merchandise to sell off through channels like these.
By far the biggest of the European shopping clubs is Vente Privee of France, which raised 180M EUROS from the sale of a 20% stake in 2007. It now has revenues in excess of 650m euros, and its success has spurred a number of companies to emulate their business model.
Brands4Friends , the largest buying club in Germany and Austria has revenues of 80m euros, and was profitable within two years of its launch.
Investors have also been encouraged by the success of Groupon , a US-based online buying club, which raised $135m in funding in April from Russia’s Digital Sky Technologies, implying a valuation of more than $1bn for the company.
Although the European private sale market is estimated to be worth around 3bn euros, it is becoming increasingly crowded. There are at least five companies in France alone now, and we are already seeing consolidation in the sector. Brands4Friends recently acquired TripHunter , a two-year old shopping club focused on offering luxury holidays. It also invested an undisclosed amount in SecretSales in the UK. In Italy, there has already been a merger in this sector.
Bigger buying clubs will end up aggregating the more specialised ones. At the same time, Amazon and eBay are eyeing the shopping club market with some interest.
Analysts are divided on how this will all pan out. Penetration is relatively low still, and this type of shopping will not appeal to all. But given you can always get a deal, it will clearly be a viable business model for some time to come!
