Reported by foodem.com, the online wholesale food marketplace-
How many daily deal sites do you think exist at this point? While several folded or were sold, there are still hundreds out there waiting to help serve your newest promotion.
The million dollar question is, “Are daily deal sites worth it?”
For some businesses, daily deal promotions do not work and are seemingly an ineffective, unsustainable strategy. In addition to the detriment of their brand, many merchants find that they have suffered a huge revenue hit, endured operational hassles and have a minimal conversion rate of short to long-term customers. These and other pitfalls have given daily deals a bad rep, but studies have suggested that services like Groupon and LivingSocial have initiated and encouraged customer loyalty.
According to a recent survey released by Foresee, a customer experience analytics firm, daily deals are partly responsible for increased business/brand awareness, purchases and repeat purchases. Of daily deal purchasers, the Foresee survey revealed the following: 1) 55% were new or infrequent customers of the business 2) 12% had never heard of the business prior to buying the deal 3) 91% of web shoppers who had already redeemed a deal had either made additional purchases from the same merchant or plan to. Although the Foresee survey seems to favor daily deal programs, businesses have to think strategically, weigh all the pros and cons, and decide whether or not a daily deal promotion is necessary for their brand.
If it is determined that a deal is necessary, following the suggestions below will help build brand value.
- Create promotions to make your brand more meaningful.
Be sure to design deals that are relevant to your target audience and focus on delivering greater value and types of offerings instead of price. For instance, offering additions such as ‘free installation’ or ‘no-wait guarantee’ to your offer will go a long way for your brand.
- Present your brand differently and creatively.
Avoid reproducing promotions that have already been done by other companies. Brainstorm and ask yourself, “What is unique about my company or brand that differentiates it from others?” Use the answer(s) to design a distinctive promotion that spotlights that uniqueness.
- Look beyond a specific product or offering.
Your overall brand is most important. Focusing on a single product will sell your brand short. Create a promotion that will attest to the value of your brand.
- New customers = Repeat customers.
A promotional deal is your chance to capitalize on new customers. Try to convert new customers into repeat purchasers by trying to upsell and cross-sell them. Collect contact information for future promotions and offers, along with sending them to your social media platforms where they can stay connected to your brand.
Have you tried daily deals for your business? If so, share your experience with us.