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Thread: Coupon Cannibals?

  1. #1
    Outsourced Program Manager Chris -  AMWSO's Avatar
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    Coupon Cannibals?
    No not coupons that eat other coupons, but rather the channel that potentially eats into your other channels. While some may argue that coupons on the whole can damage a companies brand, in fact the issue is generally not with coupons, but with how they are used by some marketing partners. When used well they can be great way to boost conversion rates or add another positive touch to the sales process, but on the flip side they can easily be used as* bait to interfere with your sales from other marketing channels. Coupons and coupon sites are a hot Read More...

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  2. #2
    ...and a Pirate's heart. Convergence's Avatar
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    Well said...
    Salty kisses, Sandy toes, and a Pirate's heart...

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  4. #3
    Outsourced Program Manager Chris -  AMWSO's Avatar
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    Had a few debates in the team on this as well. But actually saw one of our clients go from a nice well balanced program to "all coupon sales" over a very short period, the content guys were still sending the same traffic...but getting none of the sales!! That had to stop!


  5. #4
    Member chris7530's Avatar
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    Hi Chris, Thanks for the article. I would also point out that coupons used correctly are for market segmentation. It's not enough that they increase conversion rates - because anything that lowers the price of something will increase conversion (heck, give it away for free and you're conversion rates will shoot through the roof). What coupons should be doing is introducing price sensitive customers to your product who would not have purchased otherwise.

    Another thing that confuses the data is that there are essentially 4 or 5 big coupon affiliates that are responsible for most of the issues people have with coupon affiliates (fortunately, digging into these affiliates can help diagnose the problem). For example, for any given program you can see who's canabalizinng your existing sales by looking at which coupon affiliate is ranking in SEO for your 'brand + coupon' term (I assume you keep them out of PPC contractually). For many retailers their affiliate commissions will be paid in direct proportion to the position on the search engine results page. For example take 'llbean coupon' which has the following companies ranked in Google SEO:

    #1: retailmenot.com
    #2: dealcatcher.com
    #3: coupons.com
    #4: goodsearch.com
    #5: bradsdeals.com

    Given the typical clickthroughs for SERPS, I would guess that the affiliate manager at LLBean is paying the most money to retailmenot, dealcatcher is probably getting paid half what retailmenot is getting paid, and coupons.com half of that. (don't know what the latest clickthrough rates by position are but it's something like that). Further I would bet retailmenot claims the most sales in llbeans affiliate program. If all this is the case, then LLBean has a major problem with coupon canablization.


  6. #5
    Outsourced Program Manager Chris -  AMWSO's Avatar
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    Good points Chris thanks for comment. As program managers start to take a stronger and more pro-active role in stopping brand name targeting in PPC, we're starting to see a resurgence of BHO use! Not a good thing.

  7. #6
    ABW Ambassador JoyUnltd's Avatar
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    Fab article, TY Chris! & chris 7530, TY, very informative. Not happy to hear about increased BHO use, but truly, it's all about the $$$ and there will always be those, no matter what industry, who will find ways to game it (and justify their actions).
    Renée
    Pay no attention to that woman behind the curtain. -Wizardress of Oz

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  9. #7
    The slot machine that IS paid! Billy Kay's Avatar
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    Great reading from everyone who posted

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