Coupon Websites Help Generate Revenue

Here’s a situation that we’re all very much used to going through. We land on an E-Commerce website interested in purchasing the phone that we’ve been thinking about for a very long time. We check the specifications of the phone, user reviews and everything else required to make a purchase decision; and once satisfied finally decide this is the phone that I am going to spend my money on.

Do we go ahead and make a purchase? Not really; you and me now go ahead and open a price comparison website that we trust, decide which website can offer me the best deal, enter the purchase process of the website that I have selected, and proceed to purchase our phone. But then surprise surprise, we’re now presented with the option to save more in the form of a Coupon.

In India, around 80%+ online shoppers are looking out for a Coupon while, or before making a purchase.

The Growth Of Coupon Websites In India

The fact that E-Commerce is burgeoning in India is no longer something that people aren’t already aware about. The entire category is growing at a compound annual growth rate of around 35%, and was valued at USD 17 Billion in 2014. Given the rise in popularity and angel investor backing, the category never fails to see someone new and unique starting up, and is pegged to be valued at USD 100 Billion by 2020. Retail is currently one of the most popular.

An E-Commerce knowledge platform, eTailing India, has mentioned that Coupon Sites are contributing about 10 Percent to 15 Percent of the E-Commerce traffic in India. In some time this number is also slated to see growth and should rise to about 30-35 percent.

How Are Coupon Websites Helping Businesses?

India is a price sensitive market. A survey conducted by “Coupons.In” revealed that apart from comfort, Indians prefer shopping online because of the ease to locate a really good deal, and use it to receive a great discount.

For Startup businesses the initial objective is to drive brand awareness and build targeted traffic. Some of the available paid advertising options can prove to be expensive, and yet the returns on that marketing investment could depend on how the campaign is being operated and optimized. With Coupon websites, a business gets access to targeted traffic and the Customer Acquisition Cost is technically lower than a consumer acquired by Google Adwords.

Some of the popular Coupon Websites are collectively generating more than 7 Million page views a month for their partners, and recently a report carried out in YourStory.In mentioned that CashKaro (a popular Cashback website) had driven sales worth 25+ Crores for its partners.

Such is the importance of having Coupons, and having them displayed on the popular E-Coupon stores.

Apart from the above, Coupon Websites work hard in order to get the best deals of their partners in front of their users. They use Social Channels and Email to proactively keep their userbase informed about great deals and incentives available. This helps the Merchant generate great brand awareness, and also helps them with better conversion percentages.

The difference Between A Coupon Website & Cashback Website

Coupon Website – a Coupon website offers its users access to a host of Coupons that are segregated under a set of different partners. The user can choose their discount coupons based on the category of purchase; for instance specific coupons meant for purchases of specific brands of shoes, or at times depending on the order value of the cart. So incase your user has placed an order totaling to Rs 2000, they can make use of an exclusive coupon to receive a discount.

Cashback Website – a Cashback website also operates on the same principle as mentioned above wherein they allow the user to browse through a host of discount options. However, the only difference is the user also receives a Cash Back on using the Coupon and transacting with the Merchant. So to explain this with an example, a user can make use of a Myntra Voucher to receive a 15% discount on products purchased. Once the user completes the purchase, and the Merchant validates the transaction, the Cashback website then offers a certain amount as Cashback in the users account with the Cash back website. The user can then make use of this money in the future to make purchases.

How Do Coupon Websites Generate Revenue?

Cashback & Coupon websites work on the simple principle of Affiliate Marketing. Affiliate Marketing is all about paying for performance. So in this case everytime a merchant generates a Sale they pay out a Commission to the Coupon or Cashback website that helped the merchant generate the sale.

With Cashback websites they let go of a minor percentage of their Commissions inorder to provide their users a Cashback.

Apart from this, both a Coupon and a Cashback website might also generate revenue through Advertisements. The ratio would vary from business to business, but ideally the ration is 80:20 wherein a majority of the revenue is through Affiliate Marketing.

India’s Top Cashback & Coupon Websites

1) Grabon – By far one of the largest and more popular Coupon Websites in India. These guys receive a monthly traffic of around 7 Million, and people are spending an average of about 3 minutes 40 seconds discovering offers for various online stores. In terms of statistics, Grabon commands better search traffic (user looking out for offers on Google) as compared to most of the other coupon or cashback websites. As per data on their website, they have provisioned 59,243,769 Coupons in April 2016 and they have a total of 2849 online stores.

2) Coupon Dunia – Their website receives around 5 Million Visits a month, of which about 72% of that traffic comes in through search. Goes to show how well optimized the website is on search engines. As per data on their website, they have provisioned 17,68,781 Coupons in March 2015, have a total of 1894 online stores, have signed up a total of 4226 restaurants (yes they also display coupons for offline stores), and have a subscriber base of 67,40,756.

3) Coupon Raja – one of the most popular Coupon Websites in India, Coupon Raja provides their advertisers/merchants with a Merchant Dashboard for Coupon Analytics. It essentially assists the Marketing Manager with critical information such as impressions and clicks on Coupons. This way you can source data on which coupons are working well, and which products seem to be popular with the audience. Coupon Raja has nearly 850,000 monthly visits, approximately 300,000 Facebook Fans, more than 600,000 Newsletter Subscribers and are currently working with more than 1800+ Brand Advertisers both offline and online.

4) Pennyful – India’s first Cashback website caters to both the US Market through pennyful.com and the Indian Market through pennyful.in. One of the popular Cashback websites, they have partnered with around 250 Merchants in India, and around 1500 Merchants in the US. As of now Pennyful has paid out more than a crore as Cashback to its users. They receive around 140,000 monthly visits to their website, and have around 60,000 Facebook Fans.

5) Mydala – one of India’s largest Coupon Providers, they offer their audience a large selection of deals that cater to genres like restaurants, spas, salons, online stores and more. They have a presence in about 196 cities in India which makes them a really strong choice for offline merchants. They have around 7 Million monthly visits to their website, 100,000+ Merchants & Brands and around 175,000 Deals & Offers.

6) Cashkaro – also one of Indias most popular Cashback websites they offer their users the option of comparing prices, picking up a Coupon that would meet the requirement, and then finally earn Cashback. They’ve paid around 3 Crores+ in Cashback, have around 500,000+ Facebook Fans, partnered with 500+ Merchants, and receive a monthly visitor count of 900,000+ on their website.

7) Couponrani – these guys help their Merchant Partners with a Coupon API to offer Coupons for their Products or Services. So if you’re interested in offering or enticing users through Coupons but don’t have the necessary infrastructure to create one, Couponrani can help you create offers through their own system. They have a monthly visitor count of around 520,000

8) Cuponation – one of the fastest growing Coupon Websites in India with over 2000 partnered brands. An article in yourstory.com mentions that around 70% women use Cuponation vouchers to buy fashion, jewelry and shoes, and about 67% of men are using it to make travel and electronic based purchases. The website receives around 550,000 monthly visits on its website

9) Couponzguru – one of the leading daily deal and coupon websites in India, they had started off in 2011 with around 10 – 15 Merchants and have now partnered with 500+ Merchants. They receive around 1 Million monthly visits on their website, and have around 130,000 fans on their Facebook page

10) Desidime – one of India’s largest shopping communities they have about 100,000 members on their website. The website offers its users Online Shopping Deals, Online Coupons and Reviews of leading e-commerce stores, and they have partnered with more than 500 online stores. They receive a monthly visit of 3.2 Million on their website, and have a Facebook fan base of around 146,000.

Conclusion – E-Commerce is growing in India, and Affiliate Marketing is steadily but surely going to play a pivotal role in its growth. If you’re a Startup with a unique offering, or are looking at reaching out to your audience effectively, then the exposure that Coupons & Cashback websites can offer your business are one of the five reasons you should start an Affiliate Program in 2015.

Do you also use Coupon or Cashback Websites to promote your products/services? If yes, how have they been performing for you.