Daily deals are ubiquitous now on the internet. Without trying, it’s not hard to amass a trove of irresistible offers in your inbox every morning. It seems like everyone is getting involved in the game. What started at a Groupon became a Living Social, AppSumo, TravelZoo, etc, etc. In population dense areas, they tend to offer diverse opportunities to try new establishments and save a buck or two in between. However, in population distributed areas like rural Pennsylvania, Groupon is synonymous with laser hair removal. While a lot of fuss has been made about the efficacy of these daily deals, or lack thereof, it’s important to understand who should use them as a marketing tool to grow a business. With that said, here are five great reasons to consider engaging with a daily deals site.
The core offering of any daily deals sales executive is the notion that by participating in a daily deal, you will be getting extraordinary exposure that you can track right through the door (or website.) However, the awareness comes at a cost. Don’t think of it as a revenue opportunity, think of it as giving free samples to the masses in hopes that they will come back for more. In truth, a good daily deal could generate substantial traffic through the door, but be prepared for the traffic that will likely be cash-even.
One of the reasons that restaurants do well with daily deals is the fact that they are really paying for a “seating fee” when someone redeems a daily deal. Indeed the patrons may receive $30 worth of food for free, but there are tremendous opportunities to invite them to order more off of the menu. In The Secret Language of Money, David Krueger notes that the source of funds usually dictates how it will be spent. Particularly at a restaurant, “free” money allows people to be more indulgent than they might normally be.
Fill Empty Space or Liquidate Products
There is nothing worse than having a poorly attended event or surplus of inventory. One of the best things that daily deals can do is move a lot of product or event seats fast. This is particularly helpful when full pay clients expect to be in the company of others regardless of what they paid. What fun is a concert if it’s at 50% occupancy? Sure it’s not the ideal way to fill seats, or liquidate products, but you’ve got to do what you’ve got to do.
Of all of the marketing tools in the internet bag, email still wins hands down. Obtaining someone’s contact information as they supply you with a daily deal redemption is a great way to not only showcase your brand or store, but also a great way to make sure you keep in contact with that person. Nothing does that like an email from someone they know and have tried.