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In episode 43 of the Customers Who Click podcast, I spoke with Matt Gillis about voucher fraud and the problems caused by certain chrome extensions that find codes for customers.
I can totally see how those extensions are appealing to the consumer - they don’t have to spend their time searching for a valid discount code from a retailer they’re about to purchase from.
However, from a business perspective, letting those extensions roam free results in revenue loss as even loyal customers who love your products will get these discounts (possibly alongside any loyalty program you run) and unreliable discount code based tracking.
Then there’s the user experience side of things; no doubt you’ve experienced malvertising yourself when you’re hit with “you’re the winner” popup screen while browsing a website. It’s intrusive and causes unnecessary distraction which often makes the user give up on what they’re doing just to avoid the spammy popup.
Matt is the CEO of clean.io, a cybersecurity platform helping brands protect their users experience and revenue. He has 20+ years of mobile, media, and technology expertise with a history of building and operating companies from startup to scaled global market leader delivering $1B+ in annual revenues. Matt has previously been involved with companies such as Verizon Media or AOL and is a regular speaker at industry events around the world including Mobile World Congress, Advertising Week, MobileBeat, Digital East, and more. You can connect with him on LinkedIn, Twitter or email him at email@example.com.
07:16 - 17:33 - Matt Talks Us Through Coupon Extensions and Why Should Marketers Care - As you can imagine, customers love using extensions like Honey or Capital One because it allows them to save some serious $ when shopping online. But for ecommerce stores, it results in wasted resources on discount strategy, severe revenue loss and negative impact on loyalty as those users become loyal to the extension provider rather than the brand they’re buying from.
21:18 - 23:14 - Myths and Misconceptions about Coupon Extensions - Quite often those coupon extension providers offer brands a partnership in which user data is exchanged, leading businesses to believe they’ll get value from it and that the partnership might result in higher conversion rates - but there’s never a solid proof that they will.
24:26 - 38:49 - How Brands Can Protect Themselves From Auto-Applying Available Discounts - It can be tough because it’s very much whack-a-mole and the technology will always find a way around your plan for protection. But the one thing you can always rely on is data. For example, if you have two separate discount codes running but one is massively overperforming then that could mean something is up. And of course, invest in a clean out tool that’ll stop merchants from accessing your stores’ discounts.
42:53 - 45:52 - Upcoming Trends with How Businesses Use Discounts and Coupons - It’s unlikely discounts will ever disappear from shopping but marketers are definitely getting smarter with applying them to drive repeat purchase. The thing is, a carefully designed discounting strategy is great for boosting customer engagement and loyalty but overdoing it, like with anything, can pretty easily backfire - especially if it happens behind your back. It’s also worth noting that while auto-applying discounts contributes to increasing the shopping experience, it can make tracking influencer performance challenging.
48:05 - 49:28 - Matt’s Marketing Pet Peeves - Brands who retarget customers with products they have already purchased from them. It’s just poor marketing, waste of money and a bad experience for the customer not to exclude them from your retargeting campaign once they complete the action (purchase the product).
52:06 - 54:16 - Matt’s Underrated Aspect of Marketing - Word of mouth. It’s not difficult to build a mediocre product but throw money at ads and drive growth that way but there's no better way to grow your business than through word of mouth. If you build a great brand with great values, alongside your products, you'll find it much easier to generate word of mouth, as people will want to talk about a business they like, rather than just a product that fits a need.