Killing the Coupon

I’m not the kind of girl who sits at the front of the class. Okay maybe when I was a kid. (Better access for when you want to challenge the teacher.) But nowadays my style is a bit more subtle. I usually like to slink into the middle of a session. Or maybe the back on a bad hair day. But last Wednesday at Ad:Tech NY, I made sure to find a seat early so I could get right up close. Dennis Crowley was going to be speaking after all. And I wasn’t about to miss him.
But I sorta made a mistake. In my eagerness to not look like a drooling Bieber fan I didn’t swoop on him before his session started. Instead I decided to delay gratification.
Meanwhile tweeting my awe of his futuristic fabulousness, braggardly twitpic’ing blurry stage shots of him, anxiously awaiting the moment I could meet the man… the legend… the creator of freakin’ Foursquare!
And then it was over. Thirty minutes into this “one-hour” Ad:Tech session, some handlers whisked him away, telling us “Oh! This is a split session where the next thirty minutes will be a panel!”
Crafty buggers. What now?
Do I skulk past the huge crowd from my cherry perch on the mostly empty third row center to chase him down? Or do I take my chances by stalking him in the speaker’s lounge later?
Owing to my feigned affection for subtlety, I decided to sit through the panel discussion and try to catch Dennis later. And of course his office is in the city so I could always pull an “I was just in the neighborhood!” on another day. Ever the optimist.
But something interesting happened.
The geo-local mobile marketing panel that followed was the most intense, exciting, riveting thirty minutes of my entire Ad:Tech experience.
It had comedy. It had suspense. It had a protagonist. It had everything.
There were five panelists and a moderator. As the first four panelists started talking, everything they said was typical and expected within the geo-local space. Brands need to blah..blah… focus on turning check-ins into ROI. Brands need to… ahem… create coupons. Brands need to… brace yourself… build their own apps. And then something actually interesting happened.
Seth Priebatsch of SCVNGR opened his mouth.
You have to envision this. A panel of seasoned, buttoned-up suit types throwing around the greatest hits of 2010 marketing lingo. And then 21 year-old Seth. It almost felt like two panels in one. I watched as the four other panelists had their own conversation about cash registers ringing and measurable ROI.
And then I watched Seth talk about experiences, baking in the brand, and killing the coupon.

The panelists were clearly not understanding what Seth was saying, not grabbing onto his words of wisdom, or even acknowledging them. They’d give him his obligatory 30-seconds and jump right back into cash registers and coupons.
Even the moderator was minimizing Seth’s comments, subtly ribbing him about his product.
But I saw rays of light emanating as Seth spoke.
He said he’s on a mission to “kill the coupon.” He said he’s converting game mechanics into real life. He said he wants to bake in the offer and create a brand experience. Seth envisions a world where brands can connect with consumers at a deep level by engaging them, exciting them, and creating a reason for them to love the brand and keep coming back.
Not a new concept in the branding world, so why is it so easy for seasoned marketers to let themselves get blinded by the slew of shiny digital toys and forget the basic principles for connecting the brand with the consumer? It’s nearly unfathomable the word “coupon” is being bandied about in public by people who five years ago wouldn’t be caught dead recommending one.
Coupons are a blip on the radar compared to the future of geo-local mobile strategies. I can understand small businesses wanting the short-term tactical effectiveness of a coupon, and I can even accept that this is a new thing and geo-local coupons are a temporary hot ticket for big brands.
But where is the forward thinking? Where is the creative vision? Where is the risk for reward? Jumping onto the geo-local coupon bandwagon isn’t a risk. Baking a brand experience into the product/offering/promotion is. Creating a coupon instead of doing the creative homework to develop a baked-in experience is… frankly… lazy marketing.
Considering I have clients that will insist on coupons (and I’ll probably end up recommending a few here and there), I’m sure I’ll be asked if coupons are really that awful. When used for a specific short-term strategic goal, no. When used in the place of what should be brilliant, experiential, fresh-baked brand creative, yes.
Back at the geo-local session, I was giddy when I saw a sly smile cross Seth’s face as it became clear the others weren’t getting it… were too wrapped up in last year’s thinking to peek into the future with him.
It seemed like Seth’s fellow panelists and moderator would rather laugh him off the stage (game mechanics? in marketing? for real?!) than address his simple, yet brilliant vision of the future of geo-local mobile.
I have a feeling someone’s going to be doing a lot of laughing. And Seth has a pretty good idea of who it’ll be.
Join the Conversation…
Can “game mechanics” really have a positive impact on marketing?
How long until geo-local check-in apps like Foursquare, SCVNGR, and Gowalla go mainstream?
How do you “bake in” a brand experience that attracts customers without coupons?

Hi Michelle,
A very intriguing topic you’ve touched on… I think a lot of this (this being the panelists attitude toward young Seth) can be couched under the heading of FEAR.
We fear what we do not know… we FEAR what is different.
I also happen to think that the connotation of the word “coupon” is at play here.
People’s (businesses & general public alike) perception of the word “coupon”… would make for a fascinating survey re: what is your perception or what;’s the first thing you think of when you hear “coupon”… Does the word in some way “cheapen” the product, service or ware in question?
Or does it have the opposite effect and entice you to try the product, service or ware in question?
Very, very interesting topic for sure…
Thanks Michelle!
Steve O
Thanks for the comment, Steve! You nailed it when you said it’s about fear. If you’d seen the panel you’d probably agree it also felt like the proverbial “ostrich with the head in the sand.”
Yes, the word coupon has a stigma that is probably driving some of the immediate backlash, but essentially the issue is that coupons are an easy, obvious solution… and baking in brand goodness takes creativity, strategy, and actual work!
HI a coupon is usually time limited and now geo-limited – the opposite of an ongoing relationship with a customer and experiential advertising.
Interesting report, thanks.
Coupons aren’t marketing opportunities. They are price discrimination for firms engaged in monopolistic competition.
It is interesting that the geo-local crowd is bent on coupons and check-ins. I believe that SCVNGR is on to something with its “game-mechanics” and might open the door for more game-oriented geo-local services. The reason why I don’t think that SCVNGR is going to be company to do this is that (in my opinion) in order to become mainstream check-ins will have to be ditched.
It sounds a little counter-intuitive to say that checking in is not a part of geo-local but SAYING you are at a place doesn’t count as a game mechanic nor is it really that fun. I think that the requirements for geo-local to go mainstream are motivating the individual to accomplish goals/tasks individually with out the need to let the world know, motivating the business/brand to create a unique experience for the individual, and for the experience of the goal/task be the driving motivator for the individual.
A little circular but I think thats what would make it engaging. The strongest point I could make is that I don’t think it will be a check-in based service that will push this boundary.