Despite their immediate monetary value to consumers, social coupon sites are destroying the VIP experience. I remember when it was essential to build a relationship with the doorman, the bar manager and the bartender working for tips-only in order to get any discounted or special treatment. Now I simply log-on to Groupon, Living Social, Tippr or any of the 80-something social coupon sites to get the “VIP experience” for $20 when “regular price is $40!” If it was about the pure liquid cost of feeling special maybe I could better understand the motivation behind most social coupon purchases. A crucial element of the unique (VIP) experience was building a relationship with a brand and building a relationship with the people behind the brand.
Up-hill-in-the-snow-both-ways-rants come to mind.
What’s the real drive behind purchasing (social) coupons: is it an impulsive purchase or is it a calculated decision? Leah Ingram recently speculated that social coupon sites are driving impulsive purchasing decisions. The article cites PICPA’s comments about the impulsive purchasing satisfies ‘wants’ more than ‘needs.’ A cornerstone of some marketing models for social coupon sites is post-purchase share the purchase event with your network(s).
Personally, I often buy daily-deals is when they promote a brand I already support. I would gladly spend (all my) money at FBC’s Urban Beer Garden, but when an offer ran through Tippr in February I immediately purchased two deals. Already being a customer willing to spend money with this brand, I figured it couldn’t hurt to save a little extra money for my next visit. I treat supporting a favorite brand through social coupons as an investment.
When you purchase a daily-deal what’s the driving force behind your decision? Is it to save money, try something new, try something familiar, as a gift or some other reason?
Social coupon fad confronts the traditional “paying dues” – both money and time – method of attaining additional value from a brand. Regardless of a customer’s purchasing decision there will be (or already is) a disconnect in the relationships between customer and brand.