Daily Deal Promotions: What Should I Decide?

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.

Views: 46

Tags: Foodem, business, daily, deals, foodem.com, groupon, livingsocial, marketing, strategy


You need to be a member of FohBoh to add comments!

Join FohBoh




Social Wine Club for Craft Wineries


Kids LiveWell atwitter over Twitter party

In its continuing effort to promote more nutritious and flavorful children's menu options, the NRA will hold a Twitter party  -More

Starbucks could become top on-premise wine seller in U.S.

Starbucks is planning to slowly expand its evening sales of wine, beer and small plates to thousands of selected stores throu -More

The evolving nature of snacks

Snacks have shifted from an after-school treat to a meal alternative as meal times become more fragmented.  -More


Posting a job or finding a job starts here at FohBoh. Call us about special $25 posting packages to syndicate across all major jobs boards.

National News

Wahlburgers Announces Expansion Plans Including Franchise Agreement in Philadelphia

Wahlburgers has signed a franchise agreement with Hingham Associates, LLC that will bring five Wahlburgers to the metropolitan Philadelphia area over the next several years. The franchise group is actively looking at sites and is targeting a late 2014-early 2015 opening for its first restaurant.

Chipotle Mexican Grill, Inc. First Quarter 2014 Revenue Up 24.4%

Comparable restaurant sales increased 13.4% - Restaurant level operating margin was 25.9%, a decrease of 40 basis points

Jamba Juice Announces Grand Opening of New St. Louis, MO Location

Jamba Juice Company announced the brand’s continued expansion in the St. Louis market with the opening of a Jamba Juice® store at 11477 Olive Blvd. on April 16, 2014.

Expert in Real Estate Analytics Joins Luna Grill

Luna Grill, the San Diego-based Mediterranean restaurant chain, is welcoming retail real estate industry veteran Greg Thorburn to its leadership team. Thorburn has been brought on board to fill the newly created position of Vice-President of Real Estate.

Rita's Italian Ice Awards Area Development Agreement for Kansas

Rita's Italian Ice has awarded franchise and area development agreements for Kansas and the Kansas City area, which extends to the Missouri side of the city, to franchisees and local residents Jay Miller, Jeff Miller and Pat Reilly.


If you are looking for capital to start or grow your restaurant, create the next 501c3, develop and launch the next app for the restaurant industry,or want to help your peers in some meaningful way, we want to know about it.


TED: Matthew Carter: My life in typefaces - Matthew Carter (2014)

Pick up a book, magazine or screen, and more than likely you'll come across some typography designed by Matthew Carter. In this charming talk, the man behind typefaces such as Verdana, Georgia and Bell Centennial (designed just for phone books -- remember them?), takes us on a spin through a career focused on the very last pixel of each letter of a font.

TED: Jeremy Kasdin: The flower-shaped starshade that might help us detect Earth-like planets - Jeremy Kasdin (2014)

Astronomers believe that every star in the galaxy has a planet, one fifth of which might harbor life. Only we haven't seen any of them -- yet. Jeremy Kasdin and his team are looking to change that with the design and engineering of an extraordinary piece of equipment: a flower petal-shaped "starshade" that allows a telescope to photograph planets from 50,000 kilometers away. It is, he says, the "coolest possible science."

TED: Norman Spack: How I help transgender teens become who they want to be - Norman Spack (2013)

Puberty is an awkward time for just about everybody, but for transgender teens it can be a nightmare, as they grow overnight into bodies they aren't comfortable with. In a heartfelt talk, endocrinologist Norman Spack tells a personal story of how he became one of the few doctors in the US to treat minors with hormone replacement therapy. By staving off the effects of puberty, Spack gives trans teens the time they need. (Filmed at TEDxBeaconStreet.)

TED: Jennifer Senior: For parents, happiness is a very high bar - Jennifer Senior (2014)

The parenting section of the bookstore is overwhelming—it's "a giant, candy-colored monument to our collective panic," as writer Jennifer Senior puts it. Why is parenthood filled with so much anxiety? Because the goal of modern, middle-class parents—to raise happy children—is so elusive. In this honest talk, she offers some kinder and more achievable aims.

© 2014   Created by FohBoh.

Badges  |  Report an Issue  |  Terms of Service