Australia’s leading online coupon website, i love coupons claims Westfield’s partnership with Groupon might expose their retailers to risking the quality of service and availability of products in-store.
i love coupons Director, Mr Louie Van Essen highlighted group buying sites have been responsible for driving some of the small and medium businesses to bankruptcy as they weren’t able to keep up with the influx of customers driven by deals through sites such as Groupon.
“The Groupon model pre-sells products and charge up to 50 per cent of any deal’s value, therefore it is in its best interest to sell more deals. These group buying models can take advantage of retailer’s naivety, charging exorbitant fees to lodge deals when there are other online promotional platforms and advertising mechanisms available at less cost.
“Aligning with a group buying website, like Groupon, sometimes may result in retailers struggling to uphold levels of service with deals that are up to 50 per cent lower than sales prices making it difficult to provide the resources required to meet demand. This in turn irritates loyal customers and hinders businesses from impressing potential customers.
“The partnership could jeopardise the level of service and availability of product at Westfield’s shopping centres, making shopping a less enjoyable experience,” said Mr Van Essen.
Bricks-and-mortar businesses looking to drive consumer’s in-store, attract steady long-term growth while maintaining a high quality service, with online deal websites like i love coupons which allows retailers to tailor deals to suit capacity without taking a cut of the deal.
From entertainment, hospitality and education to groceries, clothing and accessories, i love coupons provides businesses an opportunity to tailor coupon solutions for free and generate new and maintain existing relationships with clientele.
Recently Westfield highlighted how its partnership with Groupon will lure customers away from their laptops and into shopping centres and combat the slump in sales for bricks-and-mortar businesses.
“Although the arrangement highlights the dependency bricks-and-mortar businesses have on promoting products and services online, it will highlight how simple it is to use vouchers for online purchases and drive consumers to purchase online at other retail stores,” said Mr Van Essen.
Westfield launched its virtual mall in April 2011 and a recent study by Nielsen revealed the platform still has room for improvement with its online audience ranking at 13 in the top 15 internet merchandise and classified sites.
“A better strategy for Westfield could be to explore stronger search engine optimisation, increase partnerships with affiliate advertisers and review pricing structures to compete with other online retailers.
“Additionally, retailers could be encouraged to align with other group buying or coupon websites to ensure it reaches a broader pool of people, rather than hitting the same target audience every time,” said Mr Van Essen.
i love coupons offers a broad range of discounts, catering to a range of interests and demographics. For more information please visit i love coupons website.
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i love coupons is a free promotional channel inviting consumers and businesses to exchange coupons, providing businesses access to thousands of Australians and offering consumers valuable discounts.
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