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Before You Use Daily Deal Sites: Things to consider

Daily deal sites like Groupon and Living Social are great tools to drive sales for your business. But, before you jump in feet first, there are some important things to consider. This point is very well illustrated with a story shared with us by one of our close clients.

Without much planning, she signed up with one of the major daily deals providers thinking it would generate many new customers. However, after tallying up the numbers the actual results were not what she expected. Not only did she lose money on the deal but there was no significant, if at all, increase in new customers.
Therein lays the problem. Are daily deal websites bad for business? Before we jump into that conclusion, I think it’s important to point out that those sites are marketing tools. As is the case with most tools, is not the tool itself but how you use it. Our client had the right idea and in principal it makes sense. Offer something for free or at a steep discount and your customers will be so grateful that they will reward you with repeat purchases.

Not so fast. One can’t just make a deal and hope for the best, that spells disaster and disappointment. Instead every aspect of the deal has to be scrutinized, especially the fine print. Before you decide on using Groupon or any other website like it, consider the following:

  • How does it fit with my other marketing efforts?
  • What percentage should I offer?
  • Think about limiting the number of deals or coupons available
  • Read the fine print
  • Prepare for the flood gates of customers to open
  • Decide on an expiration date
  • Don’t offer deals or coupons too often

Daily deal sites can be a tremendous boost to your business, but without proper planning it might end up being not what you expected. Hopefully the above tips will save you money, time and frustration.

If you are considering using any of the daily deal site, talk to us first, we will help you generate a proper strategy poised for success and help you avoid any pitfalls on the way.