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Social Coupons and Marketing Strategy

Posted on January 15, 2012

In a recent research study, we analyzed social coupons that are becoming an increasingly popular marketing tool for businesses. This study titled, "Social coupons as a marketing strategy: A multifaceted perspective" answers four key business questions related to the launch of social coupons:

  • Are social coupons profitable for businesses?
  • Can businesses influence social coupon profitability through their marketing actions?
  • When countered with a loss, how can businesses recover the shortfall in profits from the coupon launch?
  • How long will it take for businesses to recover the shortfall in profits from the coupon launch?

These answers shed new light on the ineffectiveness of social coupons in their current form in generating profits and driving business to the firms offering them. As a means to aid businesses in deciding on the choice of launching social coupons, we have developed a social coupon calculator that businesses can use to determine whether the campaign is going to result in a profit/loss and in the case of a loss, how soon can they recuperate the loss. The calculator is available here. The impact and relevance of this study is evident when it was featured on the CBS-Atlanta local news. The video can be seen here.

 Social Coupons and Marketing Strategy