Recap: How Social Media Made the Coupon Cool
by Jessica Weil
On yesterday’s episode of This Week in Social Media, host Mike O’Toole was joined by Andrew Moss, founder of BuyWithMe to discuss social coupon sites. Recent studies have shown that coupon use has spiked among a nontraditional population – those who are urban, financially well off, and tech-savvy. In fact, 60% of adults with household incomes over $100,000 used coupons in the past six months, and 40% got the coupons online. Websites like BuyWithMe, Groupon and Living Social are making frugal spending trendy and fun by incorporating elements of social media with time-sensitive coupon deals that can save consumers up to $35 on gym memberships, massages, restaurants, and more. Here are some highlights from the show.
Social media meets the deal. The deal is back with discounting, coupons and bargains, and thanks to social media – and perhaps a down economy – they’re trendy again. Sites such as BuyWithMe, Groupon and LivingSocial offer deals like hang gliding, manicures, and overnights on a houseboat.
How BuyWithMe works. It’s fundamentally different than a coupon. They run daily offers that are premised on getting a certain number of people together to commit to a price in a specific amount of time. Once everyone has committed, the deal goes through, credit cards are charged, and vouchers are issued. It’s a group buying deal that leverages the power of the community to give people an offer they can’t get anywhere else.
The right idea at the right time. Social media tools have been blossoming over the past few years, and this has created a tool set to make social bargains flourish. After the onset of the economic recession, consumers were looking for opportunities to go out and do something fun and businesses didn’t have an effective way to market without spending a lot of money. Social coupon sites created a great opportunity for both consumers and marketers.
Social media and the indie retailer. In past episodes of This Week in Social Media we’ve talked about how social media has helped indie musicians and filmmakers, and now we’re seeing how social media can help the indie retailer through these social bargain sites. Bargains and deals are particularly successful for retailers that already have a social media presence but haven’t yet garnered mainstream appeal.
Coupons and deals drive activity on social networks. Twenty-five percent of people who fan Facebook pages are after a deal. Once merchants create awareness on social networks and on BuyWithMe, there’s a viral component that makes the efforts a big successful.
Social bargain sites as trusted sources of curated deals. When BuyWithMe shows a merchant’s offer to their network, that means that thousands of people are hearing about it from a company they trust to bring them quality deals. The BuyWithMe brand is all about trusting that there’s a personal element to the deals they offer and the merchants they work with.
B2B applications for BuyWithMe. They are very interested in B2B opportunities, but for now they are still focused on B2C, which has an inherently viral component.
Do you have any ideas about how the power of group buying apply to a business marketing environment?
Listen to the full episode here: How Social Media Made the Coupon Cool




