The analysis of coupon website

With this post I will start my analysis of the biggest coupon websites in Estonia. As of this post, there are total of over 20 coupon websites in Estonia, big and small. They all have their own following on Facebook and promote their campaigns on a regular basis.

One of the first coupon deals websites started in the beginning of 2010 was Today it receives about 100,000 regular monthly visitors and has hundreds of active offers on its page.


It would be interesting to see how the website was growing over time and how many offers there were listed at any particular month. The chart below shows just that. The grey bars represent the number of offer listed in any given month. Orange line represent the total value of coupons sold during this month.


It can be clearly seen that the website gained popularity less than in 6 month, reaching sales volume of over 100,000€ with less than 50 active offers. This clearly shows that the novelty of coupon websites was appreciated by the public, and the those deals that were offered were quite popular.

Through time the popularity of coupon websites has been increasing among businesses, as it was seen as a way of boosting sales and creating awareness about the business. The number of deals has been growing, reaching a peak of ~180 deals offered in December 2013.

At the same time the coupons sales number were dropping, clearly showing that coupons were not as effective marketing instrument as they used to be. The chart below shows a more clear picture:




While in 2010-2011 average coupon campaign was bringing about 1,500€ in sales, the situation has drastically changed 3 years later. Today, a business starting a new coupons sales campaign at can expect to receive 6 times less sales.

Of course it all depends on the deal itself and the discount business is giving when compared to regular prices, but it seems that the increased competition from other coupon websites, increased number of offers from competing businesses and the diminishing interest of the general public have influenced the decrease in average sales per offer.

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