Daily Deals. Many of us receive the offers via email, online, social media, in the newspaper or on TV. The barrage of discounts on everything from window washing to massage can border on mind numbing even, annoying. As an aside: to manage this barrage of daily deals you might consider subscribing to a daily deal email aggregator like Yipit
But, what is the value of the daily deal to the small to medium size business owner/retailer? What are the marketing benefits/risks for getting involved with a daily deal? To fully understand daily deals lets first look at the predominant players in our local area.
The Local Daily Deal Players
To understand daily deals let’s look at the platforms available locally. In the Greensboro, Winston-Salem, High Point area we currently have LivingSocial, Groupon, Deal Chicken, News & Record’s Daily Deal, and Fox 8 Daily Deals.
I’ve arranged the daily deal players into two groups. Dedicated Daily Deal Operators and Extension Daily Deal Providers.
In the first category, dedicated daily deal operators, there is LivingSocial and Groupon. Both LivingSocial and Groupon are large national operations that are completely dedicated to daily deals. Daily deals are their entire business with a salesforce and support staff to go along with it.
The second category, extension daily deal providers, include Deal Chicken (locally sponsored by WFMY), News & Record’s Daily Deal, and Fox 8 Daily Deals. These daily deal providers are divisions, departments or personnel within existing media companies that have their own daily deal technology or, have strategic marketing agreements with partners that provide the technology to enable local media companies to sell daily deals.
Local Daily Deal Uses, Benefits & Risks
From my personal exposure to daily deals the entire focus is centered around new customer acquisition. A typical offer might be $15 for $30 worth of dining. The point being to bring new prospects to experience your product or services at a discount.
What are you getting for sharing profits in the offer with any of those daily deal providers?
- Exposure to their email list - which in the case of the dedicated providers could be quite large. Find out from your provider how large their email list and about any success of similar clients.
- A link to your website – this could significantly drive up traffic to your website for the time period of your deal. Do you have a special webpage, goals or actions set up on your website to capture information from these new leads/customers? Is your website hosting robust enough to handle the potential increase in traffic?
- Social Media exposure – Many daily deals incent social sharing to encourage subscribers to share the deals on various social media platforms (primarily Facebook & Twitter). This increases the reach of your deal and, if you are engaged on social media, it provides another avenue to connect and prospect.
What success or learning experiences have you had in setting up and offering a daily deal to the public? Let us know in the comments below.