It seems like every brand from every segment of a market is offering consumers deals. From the “clunker” incentive to massive growth is discount coupons consumer behavior has shifted and the expectation of “savings” is now a “must be” rather than a “delighter“.
Just consider the traffic to Savings.com, a site hosting coupons from over 800 brands. Notice the traffic shift since October of 08, up over 200%! Is this an indicator of consumer behavior? Well the data suggest that “savings” is an attraction to the masses seeking value. The lesson learned is that the economy has created a shift in consumer expectations for savings so for brands this means price reductions, consumer incentives and all at a cost.
How Can A Brand Reduce Cost and Pass On The Savings?
In an economy where savings are expected brands need to reduce their cost across the board or face deterioration of the bottom line. If a brands margin is no longer X then they either have to increase volume or decrease cost or both to maintain or improve profitability.
To increase volume of sales a brand needs to increase its customer base. To increase a customer base historically it meant reaching more people using traditional advertising and marketing means. However today traditional means of reaching existing and new customers no longer produces desired results. It is time to change both the method of reach and the process of “giving” consumers savings and improved value.
How Can We Save Even More?
On other “coupon” related sites, besides Savings.com, consumers still have to print out a digital coupon. In addition once a consumer signs up for these kind of sites they are then bombarded with “spam” offerings. So while providing value the next shift in value and savings will be a “total digital experience” with no follow up spam.
Imagine consumers enabled to download specific “digital incentives” directly to their credit card for any brand product or service they are seeking at any given moment. Imagine enabling consumers to “go to” a site that list thousands of brand product incentives at any given minute. Incentives could be in the form of a coupon, points for purchases or usage of a service or even cash given by a brand or even cash gifts given by a friend. The innovation of such a system is only limited by your imagination.
For brands the cost of advertising and marketing would be reduced to their time, knowledge and expense of creating market awareness using social media and some traditional media. For brands the use of “digital incentives“downloaded to a credit card enables specific tracking of purchases and ROI from social media. Brands would also be able to allow consumers “opt in” notification of sales which could be distributed via email or directly to a mobile device. Imagine walking into a grocery or department store and getting immediate notification and download of digital savings for products consumers are seeking.
The saving related to the suggested “system” is beyond measure and the convenience for consumers is time, productivity and value. The savings and benefits for brands are reduced cost, 100% ROI because unless the incentive is used there is little cost. So the proposed system creates cost savings for both the consumer and the brands. In addition, if a brand offers true value it is likely that consumers will share that value with their friends.
Could we be headed for a new age of advertising which is fueled by “digital innovation”? The answer is yes but instead of waiting for this kind of innovation it is already here. It’s called conversational currency and it is likely to disrupt those who are not paying attention. Get it?
Want to know more? Join the Conversational Currency Community and stay tuned for the release of an innovative enhancement to the current digital economy.
What say you?