Online local couponing finding success
The world of online coupons has had explosive success, offering businesses the opportunity to quickly and precisely bring a targeted deal to their customers. One business in Wilton has made that power all the more usable for the small business owner.
“It really has become a marketing phenomenon for small business to participate in,” said Robert Hess, a principal and founder of LocalDealsNow.com in Wilton.
Hess spent 20 years in the television business as a producer and executive producer for programs including “Entertainment Tonight,” “TV Funhous” and “Lifestyles of the Rich and Famous.” He has California-based business partners, Jamie Bertisch, senior executive of the 200-location MyGym children”™s gym franchise, and Marc Cohen, a former marketing executive with Warner Brothers and Walt Disney Co. Together, they have developed their business as a new take on what Hess calls a market with just growing potential.
“We”™re all entrepreneurs always trying to develop ideas,” said Hess. “When online coupon marketing came along, we saw something, though the space was moving very quickly.”
According to Coupons.com, for the first time in 2010 digital coupon growth has outpaced newspaper coupon growth by a margin of 10 to one.
Hess said seeing the Groupon success was a major realization for the new business. Groupon, an early success in the online coupon world, sold 441,000 coupons, translating to $11 million in one day for Gap.
“That showed us really where it was going,” said Hess. “That”™s where we said let”™s create something that can really grow inside the community. There is no question that all the local businesses that you love could do something to fill more seats and get more appointments and sell more products. With LocalDealsNow.com we have created a tight community marketplace.”
Hess said the one deal a day model didn”™t always have something that was wanted for all and the deals moved around, making them harder to take advantage of for some.
“There”™s opportunity there,” said Hess.
LocalDealsNow.com has up to 14 deals on each locale-specific online marketplace at any one time, with two deals rotating off and on every day. The trade out of the deals triggers the daily email sent to the list of users.
“We don”™t want to oversaturate the deals for the buyers and wanted to give some of the categories some exclusivity while their deals are up there,” said Hess. “They are all things in a community member”™s world, something they”™ll use.”
Hess said the range of deals is not limited to retail and extends into professional services, like accounting and financial planning.
“We don”™t have the one deal a day thing, so you don”™t have the impulse buy, which some people do like,” said Hess. “Our deals stay up there for seven days, and give you a more natural, viral approach and opportunity to use them. It lets a natural word of mouth get around a community.”
LocalDealsNow.com, has initially linked the Weston, Wilton, Norwalk and Westport areas as well as areas in the San Fernando Valley of California, where Hess”™ business partners are located.
We”™ll be adding other communities as we grow the model, every hub will have a marketplace and a representative, said Hess.
Currently area businesses are being approached one at a time to take part in LocalDealsNow.com.
“There”™s no cost or risk to the business to participate, said Hess. “All we want is for them to give one great deal. That”™s what will make people change their purchasing habits; at the end of the day the incentive is the residual business.”