What’s Next for Daily Deal Sites?By joanne | 8th November | Marketing Ideas, Marketing Skills
It seems the world has gone ‘coupon-crazy’ and everyone is looking for a deal. In some respects, you can understand why – as people’s lifestyles are squeezed, they want to keep as much as they can and therefore have to pay less for what they used to take for granted.
Sites such as Groupon and Living Social have sprung up seemingly overnight. Voucher Codes offers discount codes for everyday items, such as shopping, meals out and clothes. Martin Lewis’ money saving expert site is also full of discounts and deals – and they’re proving more popular than ever.
It’s very easy to think of joining the bandwagon and adding your deals to these sites, but how can you do so profitably? Here are our top tips from our experience and that of our customers:
- Ensure you’re making a profit. The number of people we’ve met who have created deals that lose them money is frightening. Deals are not about no profit. They are about great deals that attract new customers and make you a good return. Look at added-value, rather than discounts. And if you can’t make money, don’t offer the deal.
- Try to use a site that will help you reach new customers. If you can attract new people to your business, it could be worth a reduction in profits on their first visit.
- To achieve a long-term growth in business and profitability, you must keep a database of these new customers and then market to them directly. With hotels and restaurants, you save approx. 20% commission if people book directly, so encourage as many as you can back to stay with direct offers.
- Ask for reviews. One hotel that we work with has been rushed off their feet with Groupon deals and it’s been really hard work. But the reviews they’ve received on Trip Advisor (and the database they’ve built up) has been worth slightly lower profits on these first visits.
- You must impress the people who use the vouchers. If you’re happy to take a smaller profit margin on the first visit and see this as a marketing expense for finding new customers, you must generate a profit at a later date. If they are impressed, they’re likely to return… and they might recommend you to friends as well.
To see what might be next for the Daily Deal sites, look at http://www.thinknear.com/main_pages/how_it_works
It’s all very exciting!