You’d believe from all the hate that’s been written about daily deal sites, and the way they are now all history as an effective way to market your small business, we wouldn’t like them either. You’d be wrong.
There’s quite a bit that goes into making daily deal sites work for your local business, and a few well-publicised failures, shouldn’t be the reason to avoid using the daily deal model. As a matter of fact, if you take a close look, the lion’s share of them “failures” had quite a bit in common.
With a evident misunderstanding of just how to run a daily deal promotion, poor negotiation of their deals, and not tracking their new customers redemption and spending. Given that they had unbelievable fails in these areas, is it any wonder they failed?
Daily Deal Sites – So Why All The Hate?
One reason could be the financial struggles Groupon and LivingSocial have been going through. While they probably will come out fine at the end of the day, financial writers wanting to seize upon the harmful aspects of some daily deal sites.
They regularly point to stuff like spam complaints, a glut of deals to choose from, deal hoppers (customers who hop from deal to deal with no intention of being a regular customer) and in deal fatigue.
3 Ways you can help make Daily Deals work for your business
- Know just how the money works! – Be sure that you know how the numbers work in your deal. Determine what your average sale is and don’t try to exceed it with a daily deal. Also, make sure you negotiate credit card processing fees, as many of the daily deal sites will pick these up.
- Have a strategy for following up – Up to 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 voucher, or….?
- Don’t start too quickly – Begin somewhat cautiously, so you can master how the daily deal model works in your business, then scale up once the time is right.
The demise of Daily deal sites is grossly overstated, and you can still use these to grow your business, if you take the time to do it right!
If you have used a Deal Site to promote your business and have any experience, good or bad, we would like to hear from you. Share your experience by leaving a comment below.