As holiday selling strategies are in full swing, conversations around e-coupons surface. Coupons – whether they are online (via email or a website) or traditional (like those in the Sunday paper which are also referred to as free-standing inserts or FSIs) – are a great sales incentive, margins permitting of course. In reviewing MarketingSherpa’s 2008 Email Marketing Benchmark Guide, I came across some interesting numbers in terms of average redemption rates. I suppose it shouldn’t come as any huge surprise that traditional coupons account for 84% of all coupons used by US shoppers. But the average redemption rate is just 1.2%. I know for a fact that I’ll occasionally put these types of coupons in my purse…only to have them sit past the date of expiry because I forget to use them. You see there’s a gap of time between the time you get the coupon and the time it takes to get to the store to purchase.

On the flip side, you’ve got online coupons that have reported average redemption rates of 5-20%. And I think the rationale is simple. When we’re online – either on a website or reading email – we’re just a few clicks away from making a potential purchase. There’s no major gap in time like the previous scenario with traditional coupons. Therefore the e-coupon sets the shopper up for immediate savings and gratification.

According to Sherpa, most agree that online coupons have a higher redemption rate than traditional coupons because online coupons are directly sought out by consumers and not received passively in the Sunday paper.

But for e-commerce marketers who take targeting and personalization seriously, these online consumers don’t have to be sourcing online coupons on their own. They can also be served or presented with very specificly targeted online coupons. Why wait for them to find your incentive when you can serve it to them on a silver platter?

At Sitebrand, we have several clients using our personalization platform to recognize and respond to various shopping segments. For the segment that might be searching for bargains, an online coupon / 10% discount type campaign makes a ton of sense. But other segments that might be looking for things like “what’s new”, perhaps you don’t want or need to offer an online coupon. Instead it probably makes more sense to present a campaign that features “See our new fall line-up…” or “Check out these top-rated products”. You get my point. Just because you can offer an e-coupon with special savings doesn’t mean you should. Understanding your buyers. This is what it all comes back to. Using web personalization technology to help you create the online dialog. This is a competitive advantage.

To see some innovative uses of web personalization – discount coupons included – check out the full line-up of Sitebrand case studies…

It’s called Rue La La and it’s creating a shopping revolution that has to be one of the most brilliant online retail ideas I’ve seen in a while! It’s got designer brands, exclusivity, urgency, community and incentive…and that’s just the beginning. Here’s the gist of Rue La La…

First of all, you have to be a member. And to be a member, it’s invitation only via email so you have to be connected to someone hip and in the know. In my case, that would be fellow Sitebrander Dan Auns = thanks Dan! In your case, it’s now me, lol – I’m serious, if you’re interested I can send you an invite. It’s totally worth the discovery. Hmm, can you see the huge viral potential here too!?! Especially since when you send an invite to someone, Rue La La will give you a $10 shopping credit when any of your invitees make their first purchase. So bottom line – no membership, no access.

But once you’re a member (which is free), Rue La La is a destination that’s always changing. Any time you visit, you’ll have different and exciting offerings. No more of that same old, same old. And they love feedback because they want to be responsive to what members want most.

Now for the really cool part. Each private sale boutique is only open for 2-3 days!! Talk about creating a sense of urgency! When they say don’t delay, they mean it! And when you check out the featured boutique, there’s a days, hours and minute countdown ticking away. Now of course, they’re not foolish. In addition to seeing “Today’s Boutique”, you’re also teased with a mini list of the “Next Boutiques”. In this listing, you’ll see the upcoming days and hours of operation.

I love it because this concept is totally maximizing so many of the things you need to do to be successful online. On top of it all, the entire concept is awesomely framed around building that sense of community through social marketing.  With this post alone, I’m clearly feeding right into it!

Who are the brains behind Rue La La you ask? I wish it was me but it’s actually part of an exciting new division of Retail Convergence, Inc., featuring ”a portfolio of e-commerce companies leveraging a common technology platform, customer database, and management team to revolutionize online shopping”. In addition to owning the Rue La La brand, Retail Convervence also owns SmartBargains.com which just happens to be #100 on the IR500 list.

They are a self-proclaimed group of people who love shopping. They’ve built the connections required to negotiate private sale prices on some of the most sought after brands in fashion and home. And they have the exacting standards required to present only the best-edited collections. I should mention that Rue La La is not about trashy stuff that’s going to rip, tear and break. I’m talking about high-end designer brands that just happen to be selling at fabulous prices. Right now they are featuring Joseph Abboud. But only till 11 am EST. As of 11 am today and for only 2 days, they’re opening a boutique for vineyard vines.  Then 2 days later it’s PUMA, and so on…

So there you have it! If you want to get a taste of the ooh la la shopping experience at Rue La La, let me know and I’ll send you an invite. Just send an email to cgardner(at)sitebrand(dot)com 

Happy Shopping!