Promotions, discounts and sales — all this can be an effective way to increase sales and business development. In reality, however, many marketing activities turn into a “double-edged sword”. There are entire corporations based activities which include organization of different services and products discounts more than 50%. Among them — the service Biglion, with a turnover of several billion rubles, providing discounted services to over 20 thousand companies-partners. About the business model of coupon services and major trends in the market “invest-foresight” talked with the co-founder of the company “Biglion” Vladimir Vinogradov.
— Vladimir Viktorovich, what is the business model of coupon service?
— We have a tripartite business model: “Biglion”, partner, customer (consumer). “Biglion” acts as a channel of customer engagement for partners. While we are a very profitable channel for any business, including small. We successfully cooperate with any companies when they need access to a large amount of audience at once, and no marketing budget, but for example, there is a great offer.
Within each action “Biglion” negotiates with partners on the promotion of products or services provided significant discount. For example, the partner has a certain market value, we propose to make a discount from this value to form an action as a special offer and post on our website. Forth between “T” and the partner the contract is concluded. It spells out the terms of cooperation and information requirements for the site. Then the promotion is generated and posted. Information includes description, coupon value, expiration date, full value, the discount, and other information necessary to obtain services or purchase goods. Partner the key is to sell large quantities of goods or services, attract customers. “Biglion” gets their Commission from actually given to customers, no additional charges “entrance fee” with a partner is not charged.
Here is an example. Manicure with gel Polish is worth 1350 rubles., our partner is doing a promotional discount of 56% and offers over 756 RUB To him are clients, for example, instead of 5 people per service cost 1350 rubles. 20 for the service cost 756 RUB. Accordingly, the amount of funding will increase. After the action, the same clients were satisfied, come again.
— It is clear that this service was able to conquer the capital, but managed to get to the regions?
— First, we have appeared in Moscow, but very quickly began to develop in the regions. By the end of the first year of operation “T” has an established presence in 19 cities of Russia, basically over one million people: Nizhny Novgorod, Volgograd, Yekaterinburg, Kazan, Rostov-na-Donu and other. Entrenched in the twentieth century, we began to go to major towns and cities. At first I worked remotely, but it was not effective enough, therefore, began to open local offices. A few years later launched the franchise, which allowed to significantly increase the speed and efficiency of business development in the regions. The difference is that the franchise we have in the team a partner, a business owner who is interested in the development of the project and making a profit. As a result of development of franchising, we were able to start working in 23 cities with population less than 500 thousand, while in some cases a single franchisee takes over from the 2 cities. It is important that we have a very high percentage of remuneration for the franchisee. Our income is Commission, which averaged 40-50%. From her 70-75% we give to franchisees. Such proposals is not enough. We have a completely transparent model, a clear and demonstrable payback period.
— You work in a huge number of regions, got a lot of experience. Is the consumer region and Moscow? What?
— If to speak about activity of consumers, Moscow leads in the number of users and the purchased coupons, high interest in the pair continues in the cities. Nevertheless, fundamental differences of consumers across regions there is: in the services segment the activities and interests do not depend on place of residence. We can only talk about differences in average price in the regions it is less, than in large cities. The popularity of our shares in various cities illustrates the number of coupons, users are buying. Cases very much. Sales of shares may reach several tens of thousands — all of the data on our website is open.
— The service is used by a large number of consumers. There are some trends — how to change preferences?
— The people charged with saving everything, this is the trend of the last few years. And to save it has become fashionable, because cash back, promotional codes and other tools to stimulate the interest of user to search for maximum benefit, the desire to win in any purchase. If once we have passed the stage at which to come to the restaurant “with coupon” it was kind of uncomfortable, now it is perceived as a bargain — you “outsmarted” the system was able to get the same as the others, but much cheaper. This approach applies to many goods and services that we offer on the website. We regularly have promotions from leading partners such as Ginza Project, the Hilton, “Yakitoriya”, “Bierhaus”, “Masterslavl”, “Apricots” and the Waterpark “Caribou” and many others.
— Does any of interesting and unique technological solutions in the service?
— Yes, we are a large technology company and are constantly improving their product. We recently completed a rebranding, as it has outgrown the old corporate identity, constantly updated mobile app and website, making them most convenient for users. For example, the application is very convenient to look for nearest to you, action in town. You can buy the coupons directly from your smartphone using the Apple/Google Pay or any other payment method (Bank card, through the terminal, communication salons or with mobile phone account). You can use the coupon directly from your mobile device without having print. The application gives you dynamic, focused on customer convenience. That is, it has become easier to perform unplanned, but still a bargain. Our surveys show that many customers choose where to eat based on the stock “Bigliona” nearby.
We have the independent feature “cashback”. This is a very popular option, because absolutely all users have a stake in the economy. It works like this: you make a purchase through our site, then get some amount back. On the funds to buy new services, but you can withdraw money to your account.
— How does the marketing of the service? What actions are most effective?
— We constantly study your audience, check the demand, all the time looking for new reliable partners that can provide our customers with interesting offers. The results of these studies know exactly when and where to run, depending on the time of year, season and even the city. Therefore, the partners have come to depend on our expertise. Every day on our site appear special offers, the terms of which users can purchase a discount coupon up to 90%. Every day is something new. This can be a voucher to a cafe or restaurant, beauty or SPA, entertainment complex, for the purchase of goods, as well as discount travel and many other lucrative offers. Companies offer discounts, “Biglion” attracts more clients and customers. For consumers the benefit of the transaction is to reduce the cost, for a seller the key is to sell large quantities of goods or services. The Toolkit site is enabled filtration system of the offered shares to the cities and categories that simplify user navigation. You will find hundreds of examples when we started a small business. As micro-businesses to find an audience of millions if the person came up with something really cool, but he has no marketing budget? We very often are the starting point for a startup company and proud of it.
Interviewed By Kristina Firsova
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