The deep discounts offered by Deal-of-the-Day sites like Groupon and LivingSocial are especially appealing to cash-strapped consumers in a tough economy. In theory, they introduce your business to people who become lifelong customers. In reality, they attract people looking for one-off deals that allow them to get the most for their money.
Bargain seekers can be converted into great customers. They can also be used to liquidate inventory or generate cash flow in slow times with the right strategy. To maximize your return from deal-of-the-day marketing:
- Have an action plan in place before making the offer. This deal is a loss leader and not expected to generate a profit. How will you make money from it? If you don't know before you start, you've already lost.
- Capture as much information as possible from people taking advantage of the deal. Online offers have an advantage because people have to provide contact information to receive the product or service. Give people visiting your establishment a reason to share their information by offering a newsletter, loyalty program, or future discounts.
- Provide impeccable service. Wow people when they visit your site or location. They know they are getting a deal, top-notch care is a bonus. Making them want more helps bring them back at full price.
- Say "thank you" and ask them to come again. Simple touches can make a big difference. Sometimes, a kind word and request motivates people to act.
- Measure everything. How much revenue was generated? What effect did the increased workload have on costs and quality? How many people returned in the next week? Month? Year? Knowing specific results helps plan future promotions.
Deal-of-the-day marketing can be a successful tool with the right strategy. Make sure you have the pieces in place before investing.