How effective are digital coupon deals? ⋆ Agora Perks

How effective are digital coupon deals?

If you are self-employed or have a small business you already know how difficult it is to run successfully.  You daily face many things alone, that corporate America has entire departments dedicated to solving and you do so alone because you have no choice.  Failure is not an option!  

Today according to the SBA (Small Business Association) there are 1.2 million small business owners in the Tri-County South Florida.  These small business owners like so many more across America are the backbone of a vibrant community. They foster economic sustainment, support local government by paying taxes for fire and police services as well as so much more.

But to be a small business owner today is a real struggle. The SBA shares the percentage of small businesses failure rate over 10 years:

  • 20% will fail in the first year
  • 30% would have failed by the second year 
  • 50% failure by year five and
  • 70% by the tenth year. 

There are a number of reasons for these failures; not hiring the right staff, too much competition, untimely tax reporting and unexpected operational expenses.  It all boils down to one thing; NOT ENOUGH MONEY IN SALES COMING IN! With a steady cash flow the “right staff” could be hired, paid promotions and advertising could outdo the competition and tax liabilities would be paid in a timely fashion.   Steady money coming in to sustain a small business and pay for the different challenges is the key underlying variable for success or failure.

So how do small business owner get “steady money” coming in?

Simple answer is MORE STEADY SALES, the  small business owners must spend a certain amount of money on effective advertisement to attract and retain customers.  But, there are so many choices, so many advertisers, so many digital marketers experts preaching social media options.  Then you have the digital advertisers that charge per lick or worse yet charge the small business uo to 60% commission to sell coupons.  What’s the right choice?   it can be very confusing and the wrong choice can result in catastrophic failure.  For this reason, we take a look at some of the performance of digital marketing coupons and evaluate if in fact this is a good option for the small business owner.

There are 3 major categories of digital coupons,  Gift Certificates Programs, Loyalty and Rewards Programs and Discount Coupon Deals.  Under each category, there are varied combinations but the top 3 categories will be our focus here.

  1. GIFT CERTIFICATES or CARDS PROGRAMS:  Are a prepaid stored-value money card, usually issued by a retailer or bank, to be used as an alternative to cash for purchases within a particular store or related businesses. Gift cards are generally redeemable only for purchases at the relevant retail premises and cannot be cashed out.  Some startling facts, figures and forecast about Gift Certificate Programs.  According to studies conducted by EJ Gift Cards and The Gift Cafe, well known leaders in the gift card and certificate program industry.
  • MORE THAN $1 BILLION IN GIFT CARDS GO UNSPENT EACH YEAR. (EJ Gifts)
  • 93% OF ALL CONSUMERS WILL BUY OR RECEIVE A GIFT CARD THIS YEAR
  • 72% OF CUSTOMERS SPEND MORE THAN THE VALUE OF THEIR GIFT CARD (EJ Gifts)

This is a great way for s small business owner to make sales 24/7 and an excellent way of generating continued revenue.  Providing existing and potential customer a “discounted dollar value” for services or value packages that offer customer “great deals” are a fabulous ways of generating revenue.

  1. REWARD & LOYALTY PROGRAMS: encourages shoppers to return to the business where they frequently make purchases. Repeat shoppers accumulate points that can later be redeemed for rewards or prizes.  Customers typically register and are given a unique identifier, such as a numerical ID or membership card, and use that identifier when making a purchase. According to Brand Key and YouGov 
  • Reward and Loyalty programs are designed to boost retention.  Brand Key
  • A 7% boost in retention means in an increase in the lifetime profitability of a repeat customer by as much as 85%.  Brand Key
  • 68% of females and 59% of males participated in at least one loyalty program (YouGov)

Small Business owners spend up to 11X more on recruiting new customers than retaining good ones.  As a small business owner if your goal is to attract and retain a loyal customer, client or patient base.  There are few economic strategies, if any with better return on investment than a well managed loyalty program.

There are a number of reasons why digital coupon are so successful, the two main reasons are mobile technology and user experience. There are now 1.05 Billion mobile coupon users worldwide, up from 560M in 2014.  This provides an unprecedented access to the famed information highway make it easy for a consumers to shop, compares and buy from whoever they choose, whenever thy choose.  Gone are the days when a business owner decided what he wanted to sell.  This opens the door to the  second reason and that is the empowerment of the consumer.  The vast majority of Americans – 96% – now own some kind of  smartphone, that’s up from ZERO in 2008. This combination has resulted in that:  (Invespcro)

  • 96% of smartphone users have encountered a site that is not designed for mobile devise and will abandon a purchase, then complete the purchase elsewhere.
  • Interestingly More than 57.5% of US internet users have redeemed a digital coupon or code at least once in 2016 and is expected to reach 61% in 2019. (YouGov)

Small business owners that will be successful are looking for marketing strategies to implement these strategies without going bankrupt.  Companies like Agora Perks that offers all 3 type of programs and charge only a flat monthly as opposed to a percentage of coupons sold or a percentage of business revenue are on the rise. 

Check out this offer from Agora Perks for a flat rate of $99 will guarantee to reach of no less than 10,000 local consumers in your specific demographic target segment. Included in this special are the designs, creation, publication and promotion involving multiple marketing strategies.  No long term contract no commission.

Learn more visit:  AgoraPerks.com/SoFla

Gerardo Reyes

Way Out Mobile is the Parent Company of Agora Perks. We specialize in developing Mobile APPS and setting up effective and meaningful Digital Marketing Plan. wwww.WayOutMobile.biz Contact me, let's talk. Info@WayOutMobile.biz

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