Can Direct-Mail Out-Coupon Groupon?
By Andrea Ludtke, Special to CNBC.com
NEW YORK ( CNBC) -- Consumers have gotten savvier about finding good bargains, so businesses have to work harder to build customer loyalty. Offering them one-time deals doesn't work anymore.
Popular daily-deal sites LivingSocial and Groupon have exploded, but clients of Welcomemat Services, a direct-mail marketing company, say those customers are only as loyal as the coupon's expiration date.
This can make short-term deals the wrong strategy for local businesses that need more than a temporary boost in sales to survive.
Started in 2003, Welcomemat targets people moving into a new home with a packet of coupons for free services from local businesses. And while home buying is still down, the increase in renting is keeping business booming.Whether it's finding a place to get a haircut, wash the car, or dry clean a shirt, new residents still need these services--even in a bad economy.
| More from CNBC
Political Weirdos, Ignorant Voters and a Wise Democracy
Are Men Better Than Women at Social Networking?
From Freud to Amy Winehouse: the Anatomy of Addiction
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV