Mark Pearson was not born a millionaire, but it was made . And an important part of the drive to become the lord and master of discount coupons in the United Kingdom came from a Christmas he spent with his mother and sister in a women’s shelter .
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They had arrived there fleeing domestic violence. Little Mark was still in elementary school. “I felt like I was the man of the family and that impelled me,” says Pearson, now 34.
“At 9 or 10 I could not do much, but over time I started thinking about what to do to be the breadwinner of the family .” At 18 he moved to London . He started as a chef and then started his own florist shop. In 2006 Pearson had the idea of a million dollars: a website that lists all the discount vouchers for purchases and restaurants available.
Counting 27 years, he named the business MyVoucher Codes (My discount coupons) and made it work from his laptop , sitting on his couch in a rented apartment above a store in South London. The website was an immediate success among lovers of bargains.
In the first year he billed 300,000 pounds (about US $ 485,000) and the following year he made his first million pounds. The consecutive years achieved 3 million pounds (about US $ 4.85 million) and 10 million pounds (US $ 16 million approximately), with a profit margin of more than 50%.
Today, My Voucher Codes remains the most popular discount website in the United Kingdom and Pearson’s personal fortune is valued at around US $ 100 million.
MODEL BUSINESS PULCRO
In simple terms, My Voucher Codes receives a referral fee every time someone uses a discount code that appears on their website or weekly electronic newsletter.
So if you are ordering something online or print a coupon to eat at a restaurant and use My Voucher Codes, the company receives a commission from the product or service provider, be it an electronic store, supermarket chain or a restaurant.
Today, more than 60,000 companies use My Voucher Codes, which has “brother” websites in France, Germany and the US. In the United Kingdom alone, more than six million people subscribe to their weekly offers by email.
Pearson invested on the company’s website only 300 pounds (about $ 485) . I did not have any formal computer courses, nor e-commerce.
As a result of the success of the site, Pearson approached two industry majors: Inter Flora and Flowers Direct, asking if they could include banners with discount coupons on their website , paying commission for each successful purchase.
Pearson accepted and soon realized that he was making more money in commissions than with the roses he was selling at that time in his florist shop.
“It occurred to me that it is an immaculate business model,” he says. “Unlike roses, I was suddenly selling something that did not cost me anything to buy.”
“And so the idea of My Voucher Codes clicked me in. I chose the name, I invested 300 pounds in setting up the website and the rest is history.” My Voucher Codes was launched in November 2006 as the first discount website in the United Kingdom.
In two years Pearson had made enough money to buy a house in London for himself and another for his m
EXPANSION TO THE CITY
As the business grew, he finally hired staff and opened an office in Croydon, South London. Then he moved to his current headquarters near the Thames, on the London Bridge. Today it has 110 employees.
Earlier this year, Pearson sold the company at about US $ 89 million. Considering that he owned more than 90%, he was the biggest beneficiary of the business. With the money he bought the mobile payment firm Monitise , based in the City of London, one of the largest financial centers in the world.
Pearson hopes that My Voucher Codes can benefit from Monitise’s technology and expand its use in mobile phones. But of all his achievements, the one that makes him happiest is having been able to buy a house for his mother.
She is also part of the business: from her home in Liverpool or from the family villa she bought in Barbados, she is in charge of quality control of the firm.…
How do you feel when suddenly a shop tells you that you have a promotional code in your next order and that you save 25% or give you a 2X1 or invite you to another product on your shopping list? Well, that’s what we all feel when the same thing happens to us, that’s why the issue of discounts is so valuable.
First of all, if you want to implement discount coupons to your online store , keep in mind that these codes should be easy for users to assimilate. That is, you have to use relatively simple words and keys to remember and write, so they do not get lost in the client’s memory. For example, if you are going to do promotion for Halloween, the logical thing is that you use something like: Halloween2016
Another main point is the fact that it should be easy to calculate the discount that they will receive if they buy the product. That is, a 10% discount coupon is much easier to calculate than a 14% discount coupon. Also, it is easier to size the discount if it is something like “discount of € 20 on all orders over € 100”.
The discount codes must have the range of restrictions regarding the date, the type of product, the location and other factors. It is necessary to set limits when it comes to managing discounts, but it is also not necessary for you to go over restrictions and conditions, because then they leave without using it. In other words, you have to avoid customers thinking about it, because if they do, then they will hesitate and eventually end up not buying anything.
Now, that all is not gold in terms of discounts. A very negative aspect of them is that you get used to them, and worst of all, that you accustom your clients to having them. If you abuse a lot of them, you will probably notice drops in conversions when you do not offer them, that is, in the end your business runs the risk of falling into the network of hunt hunters (the typical users who only look for punctual offers and are not loyal to any store)
What kind of advantages can coupons for your ecommerce suppose ?
Increase spending per client
When you carry out a discount promotion for a specific purchase value, or for a series of items (for example, if you sell cosmetics, you can offer beauty packs of the same brand, and if they buy all you offer a discount for the whole ) Many users tend to increase the value of their order to reach those minimums. This causes the client to spend more than he had in the beginning.
Build loyalty with consumers
The best way to establish a relationship with a customer that forces you to come to your store periodically is with offers and discounts. Exclusive opportunities that come directly to him and that incite consumption. Be generous with your list of subscribers to the newsletter and give them, from time to time, exclusive discounts.
Strengthen brand awareness
When you manage to develop a good list of subscribers, as well as a regular activity and with feedback on social networks, and in addition to people who, periodically, consult your store in search of offers and possible purchases, you are increasing the added value of your online store and generating a community around it. Little by little your subscribers will see the brand and not the products, greatly increasing the durability in your memory. They will no longer go in search of “that store that has offers” but will go to “your brand”.
Analysis and control
“Power without control is useless”, yes, it is the slogan of a tire brand, but it is a truth as a temple in almost all issues related to ecommerce. It does not help that you kill yourself to improve and optimize your business if then you do not do a stage of analysis and control of the results obtained. This part is fundamental to be able to measure results and know what we have failed and what we have achieved. The analysis tools are multiple and variable (from those offered by Google, those brought by your own ecommerce generator, those offered by your emailing provider …)
The best thing about social networks is that they are not only a channel of direct communication with all your customers and potential customers, but also that it represents a branch structure in which everyone is connected to everyone. If you throw a juicy and attractive offer, and in addition, you do it in a way that people can compensate you for sharing it (for example, making a discount that only applies to the one you have managed to bring to a friend), it is very possible that this offer / discount goes viral in a very short time.
Do you start to see the value of discounts? They are a powerful commercial weapon, and in fact, it is usually one of the best results. Now, you have to do it well, and most importantly, you can not base all the commercial strategy of a business on discounts, because that is either a lie (and there are no such discounts, only inflated prices, a very counterproductive tactic ) or it is a ruin impossible to maintain.…
Selling online is something tempting and everyone who has a physical store goes through the head to do. If I already have the experience and the products, why not sell online the same way I do on the street?
The problem with electronic commerce is that competition is brutal. To sell online you have to use marketing tools and strategies much more aggressive than on the street.
Discount coupons as a method to attract customers
One of the methods that works best to convince a potential customer to end his purchase and not leave the shopping cart when paying is the discount coupons.
If you are one of those who have a control of the abandoned carts when making the payment (if you do not have control, I recommend you to put yourself there already), you will see that the percentage of dropouts in this last step is very high, almost 70% average on online sales.
There are numerous causes that can lead to abandon the intention to purchase in that last step, but the main ones are:
Increase in final expense for shipping costs, VAT
Lack of confidence in payment methods
Invalid delivery conditions for the customer
Slow web page
Long and tedious purchase form
Final price more expensive than the competition
One of the most forceful and effective ways to improve abandonment by increasing the final price , either for shipping costs, VAT not included or any type of extra that must be added at the end is to offer a discount code that can compensate for that increase .
To the one that does not suppose an effort to him that increase can not even worry of looking for a coupon discount in Internet before following with the process of purchase, but to that really worries to him and wants to save in the final step, very probably look for that code and It serves as a psychological stimulus to finalize the payment and not abandon the cart.
Discount codes in subscription businesses
The type of business where more and greater discount coupons exist are usually in business models that are based on subscription payment .
If the way to monetize your project is based on a monthly, annual payment … you can offer a very aggressive discount with which you may not even make money with the first payment.
Aggressive promotions in these business models work very well because it is a very effective way to engage customers who doubt whether or not to acquire your service and need a strong stimulus to prove it. If your product is good, you will surely decide to renew the payment once the first paid period has expired and that is where you make your services profitable.
Businesses where it is customary to find discount coupons for example are hosting companies . A satisfied customer with your hosting will hardly change to another if the price is in line with the market average. Hosting companies offer numerous coupons like these where the first payment always has a significant discount.
Another business model where coupons are widely used is online courses that require a subscription. A juicy initial discount is offered so that the student is encouraged to start the course and renew his subscription monthly.
If you are an online store owner and have not yet tried the discount coupons, activate them and find out if your% of abandoned carts improve with this option, you may be surprised. In addition, you can send these coupons to your customer database to reactivate them and have them repeat purchases.…
Discount coupons can be a very useful tool to attract new or recurring customers. However, it is important to make sure of the discount adjustments in the global strategy of the brand.
Running the race to become the leader of “low prices” can have a disastrous effect if you’re not careful. Sometimes, it is better not to lower the prices and the wisest thing is to devote your energy in giving an exceptional service with a unique brand experience.
In any case, the execution of an e-commerce business has to do with experimentation and the search for what works best. Let’s review some of the ways you can use the discount vouchers to attract and delight customers.
Address new customers with discount coupons
For your most popular themes, simply tweet discount codes and add a hashtag for the keyword or brand name that is associated with the following items:
You may want to tweet your discount coupons a couple of times to get more attention. Make sure you change the sentences of your tweet so that duplicate tweets do not come out.
Facebook now allows you to use hashtags too. But in order to get a better response from Facebook, upload a photo of your product, along with a short message regarding the promotion.
How to use coupons without damaging your brand
Although we are warning about the development of a discount culture, that does not mean that discount vouchers can not be used from time to time or even intelligently. Here are some ways to use discount coupons without damaging your brand.
INVENTORY YOU WILL NOT MOVE
This is the most obvious place to use the discount coupons. Nothing is more dangerous than staying with inventory that you will not sell. In this case you can create specific discount coupons to move these items. You can give a direct discount percentage in individual terms or make them free when you reach a certain amount of money in an order.
SHOW CUSTOMER APPRECIATION
Clients who have remained loyal are the best friends of any business. This is because it costs more to acquire new customers than to keep old ones. A great way to show your appreciation is to send them coupon codes by email to show them how grateful you are to them for supporting your brand.
REWARD YOUR NEW CLIENTS WITH AUTOMATIC DISCOUNTS
One way to keep customers loyal is to automatically apply discounts on your first purchase in your business, but without telling them in advance. Alternatively, you can waive the shipping fee per purchase at the first time. The surprise in a great tactic to make customers for life.
Marketing with coupon discount on websites
If you really have the itch that your online store is known and you can get your first sale, you can put discount coupon codes on websites to get discount coupon finder traffic. The drawback is that these websites are aimed at people who are looking for very low prices and do not necessarily seek to become followers of your brand.
Here are some websites where you can put your coupons:
- RetailMeNot – You can send your coupons here:http://www.retailmenot.com/submit.php
- Coupons.com – This website emphasizes the ability to direct mobile buyers.
- Slickdeals.net – Has been with us since 1999 and provides a way to share coupons freely.
If you’re going to experiment giving coupons, think about how it fits into your overall business strategy. In addition, it reviews consumer protection laws on the expiration dates of coupons and usage rules.…
Coupons are a classic of marketing: perhaps it is a resource to attract customers that has been used for forty years, and that has survived the ‘transfer’ of the digital era, and it is still a method used by many companies.
Giants like Google himself are still using coupons: they give away up to € 75 in their new Google AdWords customers, their advertising platform, which we all know already. Other giants like Wal-Mart, even McDonald’s are still using them, in the middle of social networks and ‘all digital’.
The detail is that, as brands, we underestimate the power of coupons, and that is what companies such as Cupon.esknow .
These are the facts of the coupons that you may not know, and you should take into account now:
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1. Coupons influence much more than you think
We all know, and it is shown in many studies, that the best method to make a small business known, or large, does not matter, is the ‘word of mouth’ method, or as in Mexico they call it, ‘by word of mouth’ . The power of a recommendation of an acquaintance is very high, and greatly influences the decision of the consumer on whether or not to acquire the product or service.
The only comparable method is a coupon in the hands of your potential client. Google knows that very well, not for nothing gives that amount of money.
2. The use of coupons is measurable
The reason why coupons are still used in companies of all sizes and branches, is because they are easily measurable. It is as simple as counting the coupons issued against the coupons used. Maybe it is reduced to the maximum, but it is easy to measure the performance of a coupon, it does not matter if it is a printed coupon or one generated online.
3. It’s hard to forget about a coupon
If in your business, small or giant, you announce a promotion, succulent, highly anticipated, and with expiration date, and at the same time, you give a coupon for another less attractive offer, we bet you that the coupon will be more successful.
Why? People forget promotions, because there is nothing physical that reminds them of the offer, instead, the coupon can be added to the Google calendar, if it is online, or to the portfolio if it is offline.
4. You make contact with your client
Unlike advertising campaigns such as radio, printed press, or even online advertising, the discount coupon gives you a direct deal with the customer when you do offline, generating a small talk or contact with your client, where you can know what feel, what you think of your business, etc.
Not for nothing big companies hire staff for the delivery in hand of discount coupons
5. People use coupons … more than you think
It is estimated that 93% of e-commerce customers in the last three years, have done so at least once, a discount coupon on their purchases, and we talk about all kinds of products or services, from the purchase of a domain, until the purchase of electronics.
6. Success story
A good example in Spain is Cupon.es , belonging to the Panna Cotta Group , where it offers millions of customers discount coupons of major brands in all types of areas, from beauty, flights, accessories, clothing and electronics.
Why is it different? Because it has the best brands in its catalog and because it offers them free of charge to the customers of Cupon.es and without the need for them to register on the page or any email newsletter.
If you want to ‘hunt’ offers, yes you can subscribe, but it is not necessary to access the coupons offered by their brands.
Both the success of Cupon.es and the rest of the group’s pages has been picked up by media such as Forbes, Newsweek, El Mundo, Terra and Bloomberg.
If you own a small business, learn from Cupon.es and at the same time, get juicy offers in big brands. Do not underestimate the power of a discount coupon.…