The Internet is about to make the term “coupon clippers” a dated expression. These days, coupons don’t just appear in the Sunday newspaper or in bulk mailings. Electronic coupons now are all the rage on the Web, with savings sites popping up all over.
Internet coupons take two forms. There are printable coupons users run off on their own home printers. There also are electronic coupons, which are “redeemable” by linking to an online retailer. Most of the time, the coupons feature modest savings, such as the familiar cents-off coupons for grocery stores. But some feature sizable deals, ranging from $10 off an order to free shipping (which can be pricey for large items). Most coupons are different from the ones found in newspapers.
One of the largest coupon sites is Chicago-based Cool Savings.com (www.coolsavings.com; coupons are pictured above), which boasts 650,000 new members every month. (Members are those who register with the site.) The benefits of online coupons are manifold, according to Steve Golden, the chief executive officer for Cool Savings.
“Businesses like it because they have less handling cost and it’s much cheaper than direct mail,” he said, adding that because most sites ask consumers to register, businesses glean important marketing information. By using artificial intelligence, the Cool Savings site uses consumer preferences to create individually designed pages.
“These sites are being dynamically generated by your preference,” Golden said. So, if a buyer has a history of buying and browsing for shoes, she’ll get shoe coupons the minute she logs on.
Still, it’s caveat emptor out there on the wild world of the World Wide Web. While it’s rare to find a site that offers bogus coupons, many will link you to online retailers that are not reliable. Others will ask for your e-mail address (for “future promotions”) and end up selling your address to scores of spam artists. On a recent test of such established coupon sources as ValuPage (www.valupage.com), Cool Savings and H.O.T! Coupons (www.hotcoupons.com), there were few bad experiences. When this reporter redeemed an online coupon, one site sent an incorrect order. When I went to the site to complain, I discovered — much to my chagrin — that the site had no posted address, which is a definite warning sign.
However, communication via e-mail got me my intended product. Also, despite promises of strict privacy, my e-mail address ended up on some spam lists. People in the business of online retailing say such experiences should be rare.
“The truth of the matter is that most companies are doing a good job,” said Rich Baumer, CEO of Venture Direct, a company that provides online incentives for many big-name retailers. He explained that the most conscientious retailers only use a system, called “opt-in” e-mail address collection, that lets the user decide whether to be added to the company’s e-mail list to receive future mailings (promotions, contests and sales notices).
“There’s value in collecting an e-mail address, a name and postal address, and data that’s associated with (the consumer),” Baumer said. “Most of the time, the retailer will be selling you offers that you want. It’s a win/win situation. You’re happy because the mail is relevant, they’re happy because you might buy.”
As for ordering from questionable retailers, the best protection is to look around the site before acting on impulse. Find a business address (not just a PO box) and phone number. The Better Business Bureau (www.bbbonline.org) warns that many sites look legitimate with fancy graphics but are nothing but online scams. Check out the URL with Internic (www.internic.net), the business that registers all online domain names. Internic has contact names and addresses on file. Also, if ordering via credit card, make sure the site uses “secure socket layer,” which is encrypted.
One way to detect secure socket layer is to look for the letters “https” — the “s” being the key indicator — in the link. Some browsers will display a little lock symbol somewhere on the screen to indicate security. It isn’t always the retailer who might be operating on the shady side of the street; sometimes consumers commit fraud.
To prevent someone from printing the same coupon a hundred times, companies encode coupons that users print. So if you were to print out and redeem more than one coupon, the system would recognize multiple redemptions by one user, and you eventually would be tracked down, warned with a letter and possibly locked out from future coupons.
“There is no more likelihood of fraud than with coupons you get in the newspaper,” said Golden of Cool Savings. “With ours the advertiser is able to limit how many are issued.”
Hunting for coupons can be fun, but be warned that it can become addictive. Here are a few of the better sites out there:
– Cool Savings: This site was one of the first coupon sites on the Net. It offers online coupons, printable coupons, contests, free samples and other incentives. You must register to participate, which might be a problem for those who want to maintain anonymity. However, you can opt out of e-mailings at any time.
– ValuPage. Dominick’s, Jewel-Osco and Cub Foods stores participate in this nationwide site of grocery coupons. Shoppers print out a page with savings choices, present them to the cashier and will receive Web Bucks, which are redeemable as cash on future visits. Offerings change from week to week.
– H.O.T! Coupons. Enter your ZIP code and receive a whole list of local businesses offering everything from massages to psychic readings to doughnuts. The site might need a little updating: it said my ZIP code doesn’t exist.
– Coupons.com (www.coupons.com). Quality retailers top the list of participating businesses here. This site requires a download, which might discourage those with slow modems or little patience.
– My Simon (www.mysimon.com). While not a coupon site per se, this site analyzes the best buys on the Net and takes you directly to the retailer. It also features a rating of the most reliable retailers.
– All About Coupons (www.allaboutcoupons.com). This site links surfers to the many coupon sites and offers tips on using coupons and getting refunds. The site even provides discussion about various bargains
ATTRACTING SHOPPERS WITH DISCOUNTS
The same sweater. The same retailer. Ten dollars cheaper. How can you resist? Some retailers are so eager to attract visitors to their shiny new Web sites that they are willing to offer big savings — often the same items featured in their bricks-and-mortar stores. Many large stores, such as the Gap and Barnes & Noble, hand out coupons offering savings at their Web sites.
J.C. Penney regularly sends out offers for Web shopping that don’t apply to the physical stores. Some retailers offer free shipping for Web orders. Others will take as much as $10 off an order. While it seems that such tactics would make people abandon retail stores for cheaper online shipping, this rarely happens.
Many shoppers still want to see and feel objects before they buy. Many others are loathe to use credit cards online, not matter how secure the connection. So attracting online shoppers is worth a little expense for retailers.
“The Internet is not just about price, it’s also about convenience,” said Jerry Hirsh, who does public relations for Barnes & Noble’s Web site. “Coupons help encourage people to give the site a try. A few dollars off a book is a small price to pay to acquire a new customer who will likely be quite loyal if he/she likes the service.”
Sometimes retailers need to justify the overhead they put into creating a quality Web site, hence the incentives. Once the offers generate enough Web site traffic, the discounts disappear.
In the future, more merchants will be integrating their online businesses with their retail stores, allowing a customer to buy an item online and exchange it for a different size at a local store.
While it would seem this should have happened a long time ago, integration is often complex, said Rich Baumer of Venture Direct, an online marketing firm. The companies with fully integrated services will be the winners in the marketplace, he added.
– L.V.
