Posts Tagged ‘Consumer Behavior’
A simple idea: take QVC’s Home Shopping Channel business strategy to the web. That’s what Groupon is. A deal-of-the-day concept that started in Chicago two years ago.
The company offers one “Groupon” per day in each of the markets it serves. The Groupon works as an assurance contract using ThePoint’s platform: if a certain number of people sign up for the offer, then the deal becomes available to all; if the predetermined minimum is not met, no one gets the deal that day. This reduces risk for retailers, who can treat the coupons as quantity discounts as well as sales promotion tools.
But many companies have tried similar programs and failed. What has made Groupon a success in comparison? First of all, unlike others, it is geographically and behaviorally targeted. The coupon offers are specific to cities and/or metropolitan areas and the offers are specific to what customers say they are interested in. But most of all, Groupon is not afraid to be picky. They will only accept very legitimate savings offers from well-established companies. In other words, they have an air of trust. Who wants to use a coupon that doesn’t really save you anything? Most consumers fear looking foolish, so the trust factor in a coupon had better be high. And the higher the trust factor, the more successful the coupon.
Once again, successful marketing is all about trust. And Groupon seems to understand that.
[edit]
If you’ve visited our Brandtailers office you probably noticed that we have books everywhere. All on marketing and advertising. We’re fanatical about staying ahead of the curve, so we read a lot.
But, if you only have time to read a few books over the summer, how do you choose from Amazon’s 33,000 titles in marketing, advertising, and social media? Ugh.
We filtered through our library and found what we believe are today’s five best books to read. They offer you a well-rounded understanding of the latest consumer preferences, marketing strategies and technology need-to-knows. Hopefully you’ll have time to devour a few. (Oh, and for those of us who spend more time in their cars or at the gym than sitting with a book, there’s always Audible.com)
1. DON’T MAKE ME THINK – Steve Krug
Although it’s a couple years old, it’s still the best book on what makes a great website. It’s written in plain, and downright funny, language. We often give it to clients as gifts. It’s not for programmers. It’s for the rest of us.
2. TRIBES – Seth Godin
Seth hit another home run with Tribes. He took what is happening in the world of marketing and applied it to basic human behavior. By the time you finish this short book, you’ll feel like you’re viewing the world through a whole new lens.
3. THE NEW RULES OF MARKETING AND PR – David Meerman Scott
David just revised this book with new updates, so make sure you get the latest edition. It has the best examples of how things have changed for marketers, along with the new rules of engagement. It’s simple, useful and inspiring.
4. TRUST AGENTS – Chris Brogan and Julien Smith
For anyone who has spent a year or more in social media, this book may seem a bit simplistic. But the overall message of how trust drives today’s world of marketing is the most important and valuable take away. It makes you want to be a better person (and marketer).
5. WEB ANALYTICS 2.0 – Avinash Kaushik
OK, maybe sections of this book get into a little too much detail, but you can skip those parts. Avinash is so entertaining in the way he explains current web technology, you’ll be chuckling while learning. Don’t be afraid of the title (or his name).
What books would you add to this list?
It’s only Tuesday and it’s already been an interesting week. Depending on what news you listen to or read, the economy might be in store for a “good-but-not-great-and-certainly-cash-not-credit” holiday shopping season. With Black Friday just around the corner, this TED talk by John Gerzema of Young and Rubicam seemed like a timely 16-minute video to show my staff today. So I thought I’d pass it along here. John has a great background in consumer behavior and advertising, along with being co-author of a terrific new book, The Brand Bubble.
