Constant Contact Offers Coupon-Based Deal Marketing

E-mail marketing service provider Constant Contact, an American Booksellers Association affinity partner, recently launched SaveLocal, a program that allows merchants to offer their customers coupon-based discounts, while maintaining control of each deal.

Last week, Gail F. Goodman, chief executive of Constant Contact, was interviewed by the New York Times about the company’s new product. The aim of SaveLocal, she explained, is to provide quality over quantity by targeting a small company’s existing customer base — people who are already familiar with its products or services.

SaveLocal is still in its infancy, but Constant Contact customers have already had success with discounts of less than half off, Goodman told the Times. Though the discount level that might yield diminishing returns has yet to be determined, so far, a number of program users have found success with a 33 percent discount. “A smaller discount might not attract as many customers,” she said, “but it’s the rabid deal-seekers who are going to find it less appealing, and that’s not necessarily who small businesses want to attract.”

Constant Contact Vice President and General Manager Dave Gilbertson believes that SaveLocal is a natural application for indie booksellers. “The deals market as it currently stands is literally driving merchants, like booksellers, right out of business,” Gilbertson observed to BTW. “SaveLocal was created to address critical problems that exist with the current daily deals model, which puts merchants at significant financial and organizational risk because they are not in complete, end-to-end control of any deals they run.”

SaveLocal is currently available to all U.S.-based Constant Contact customers. The program allows retailers to choose the discount amount, the terms of the deal, timing, and how many deals to sell. Merchants pay $1, $2 or $3 per deal purchased, depending on the value of the deal.

SaveLocal collects contact data for everyone who buys a deal, including permission to communicate with them going forward (customers can opt out at any time), to help businesses foster long-term relationships. In addition, deal sharing through word-of-mouth recommendations is incentivized. For example, booksellers can reward those who buy a deal and then share the deal with their friends via e-mail, Facebook, or Twitter.

The program also provides merchants with access to reporting metrics so they can track the success of their deal, including how many coupons they sold, how many new customers were brought in, and how many times the deal was shared, said Gilbertson.

Another reason SaveLocal might appeal to booksellers, he added, is that a deal could also be a great way to move older or slow-moving merchandise. “With SaveLocal, the merchant has the choice/control to run either a broad dollar-based deal or a deal on a specific item, which could help them target inventory that needs a ‘push.’”

Visit the ABA Constant Contact page for additional information.