You’d believe from all the hate that’s been reported about daily deal sites, and the way they are all history as an effective way to market your local business, we wouldn’t like them either. You’d be wrong.
There’s an awful lot that goes into making daily deal sites enhance your local business, and a few well-publicized failures, shouldn’t be the reason to stop using the daily deal model. As a matter of fact, if you take a close look, the lion’s share of these “failures” had plenty in common, particularly a glaring misunderstanding of the best way to run a daily deal promotion, poor negotiation of their deals, and not tracking their new customers redemption and spending. Given that they had epic fails in these areas, is it any wonder they failed?
But why all the hate mail?
The well-publicized financial and structural changes Groupon and LivingSocial are going through are often cited causes of dislike. The press is only too quick to point out the negative aspects of some daily deal sites. They repeatedly point to things like spam complaints, a crowded marketplace of daily deals to choose from, “deal hoppers”, customers who hop from deal to deal and seldom become a regular customer.
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. Understand what your average sale is and don’t try 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 – Up to 75 percent of these daily deal customers are new to you, so be sure that you have a plan set up to entice them to return, whether that be another coupon, or….?
- Don’t start too quickly – Begin somewhat cautiously, so you’re able to learn how the daily deal model works in your business, then scale up once the time is right.
The death of Daily deal sites is grossly exaggerated, and you can still use these to grow your small business, by taking the time to do it correctly!