Today, TechCrunch called out some numbers from the folks over at JiWire that quantify how far people are willing to travel to get higher levels of discounts. Wait – people will travel further for bigger discounts? No way!
Kidding aside… first, this overly simplified take on the data makes me think a lot of people way undervalue their time. 40 percent of respondents will travel up to an hour for a 40% discount on a $100 item? People – haven’t you heard of Woot?
Second, while the implications of this are pretty obvious for location-based promotions, I’d love to see some data that tells the story of how much “work” people will do in exchange for incentives online. How many friends’ email addresses will Joe sell out share in exchange for more vegetables for their virtual farm? How many completely irrelevant offers will Franklin click on to build up points for a gift card? How many times will Susie refresh a page to get a free sample worth less than a buck? What are the incentives required to get engaged users of your product to enthusiastically tell their friends?
I ran a promo in late 2010 where a beauty product that’s normally $89 was offered on an extremely high profile national TV show for just $10. The resulting traffic to the website was roughly 500 times average. The site slowed to a crawl, and would-be customers had difficulty purchasing. One of the most amazing things about this offer was the number of people who complained angrily via Facebook and the more traditional customer service channels that they’d been “refreshing for ten hours” to make the purchase. Important feedback, and very helpful in understanding the level of emotional investment in the product, but the time investment people were willing to give up was way higher than I’d have suspected. The vocal folks in this case were a small minority compared to the overall sales, and I think it’s important to not place too much value on the anecdotal information. Still, ten hours of refreshing to save $79 on a non-essential cosmetic product?