Archive for November, 2011
Worst. News. Ever. The joyful days of catalogs piling up on your kitchen counter, sifting through special sections of newspapers and flipping through coupon books may be nearing an end. Remember how fun it used to to be to sit around and go through every coupon, one by one, to find the few that were useful?
…Okay, so maybe not so much. But coupons have their benefits, and from time to time, they can save a ton of moolah. And they’re making a strong comeback, in 21st century form.
Sites like Groupon, LivingSocial, and Google Offers have become popular destinations for consumers wanting to get the best deals possible. Businesses have been lining up for a shot at these services, which offer a chance to expand their market share and brand.
The psychology behind these sites is nothing new, but it is interesting. Everyone wants to save money, but they are even more inclined to do so if there is some sort of limit on when and how they can achieve those cost-cutting measures. The tried and true concepts of scarcity, and social proof can be seen in these social coupon sites. By setting a limit on the amount of coupons available or havingg a countdown on the availability of the coupon, sales can skyrocket. And if everyone else is buying, why shouldn’t you?
Also of note is “transaction utility”, or feeling good about a good deal. If you are actively aware of the savings you are making by taking advantage of a certain offer, it is natural to consider yourself a savvy, forward-thinking consumer.
This isn’t to say that there aren’t some cons to the social coupon structure. Some businesses find that they can’t keep up with the increased demand of their product or services, and others worry that many of their new customers will never return.
These coupons aren’t guaranteed to boost you profits or make your business more successful. But they have potential.
As for dental labs, I think this business model could have some promise too. Does the future hold a potential social coupon offer for your lab or business? It’s certainly a possibility. Talk to us!
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