Why You Should Consider Giving Daily Deal Sites Another Look
Why Should I Consider Giving Daily Deal Sites Another Look?
Despite all of the vitriol that’s been written about daily deal sites, and how they are all universally “out” as a way of marketing your local business, we’d disagree. There are a number of things that go into making these daily deal sites work for your business, and a few well-publicized failures, shouldn’t be cause for sinking the daily deal model. In fact, when examined closely, most of these failures had a number of things in common: failure to grasp how to run a daily deal promotion, poor negotiation of their deals, and not tracking customer redemption and/or spending. Lacking these vital pieces, it’s no surprise they failed.
But why all the hate mail?
The well-publicized financial and structural changes Groupon and LivingSocial have been going through are often cited reasons for dislike. The press is quick to point out the negative issues with some daily deal sites. They typical point to things like spam complaints, a crowded marketplace of daily deals to select from, “deal hoppers”, customers who hop from deal to deal and seldom become a regular customer.
3 Simple principles to make Daily Deals work for your business
- Know how the money works! – Make sure you know how the numbers work in your deal. Understand what your average sale is and don’t attempt to exceed it with a daily deal. Also, be sure to negotiate credit card processing fees, as many of the daily deal sites will pick these up.
- Have a plan for following up – As high as 75 percent of those daily deal customers are new to you, so make sure you have a plan in place to entice them to return, whether that be another coupon, or….?
- Don’t go too big, too fast – Start conservatively, so you can learn the basics and not be swamped by the deals, and leave a bad taste in everyone’s mouth.
Daily deal sites aren’t dead, you simply need to know how to best utilize them for your small business.