The trend known as pricing pandemonium is changing the landscape. And love them or hate them deals-based programmes are changing the way that people interact with businesses, particularly SMEs. In so doing they are changing the very nature of programmes that we marketers are required to design. A number of clients have asked "what's are Groupon strategy" lately! I also thought this recent effort by Kogan is also a nice example of this trend at play.
In a not so unrelated twist, I was also stunned recently to read that contrary to my perception, email effectiveness is actually improving. In the latest Vision 6 survey (2H 2010), clickthrough rates are up (c.6%), open rates are up (c.25%), and bounce rates are the lowest in four years. Clearly this is as a result of better hygiene in terms of data - marketers getting the basics rights. But I also wonder if the hammering my inbox gets from a new breed of email marketer has anything to do with this?
Certainly the volumes that the likes of Spreets and Cudo and Living Social are driving, adds a load to the overall send volumes. Check out the data points below (via digitalmarketinglab ). And then multiply by 30 for a monthly number - I'd estimate 120M messages a month - it's significant. Another reference to this trend here.
So for SMEs do these sites offer a good alternative to the historically strong channels of Yellow Pages, Local Papers, or entities like the Entertainment Book, or indeed their own newer email or social media initiatives? I'm trying to look beyond the hype (both positive and negative). I'll check-in on this again.
And what about brands? Does pricing pandemonium offer an opportunity for them? Or does it represent the "large scale strip-mining of brand values" as my colleague Craig Davis ponders?
I'm thinking on it. Anyone got any suggestions or evidence?
Simon Morgan is a Partner at Mojo and Publicis Digital Australia. Known unaffectionately by his friends as fAdman, he has always got his fingers in several pies - usually somewhere at the intersection of advertising, creative, technology, pizza and ukulele. He is married to Miriam and together they wrangle three challenging young boys in Sydney, Australia.
