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Posted by Jeff in Marketing

Give Daily Deal Sites Another Look

by Jeff Newton

You’d assume from all the hate that’s been written about daily deal sites. The way they're now all a thing of the past as a way to market your small business, we wouldn’t like them either. You’d be wrong. There’s an awful lot that goes into making daily deal sites work for your local business. A few failures, shouldn’t be the reason to stop the daily deal model. As a matter of fact, when you take a close look, the lion’s share of them “failures” had quite a bit in common, particularly a obvious misunderstanding of just how to run a daily deal promotion. Not tracking their customers redemption and spending. Given that they'd epic fails in these areas, is it any wonder they failed?

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But why all the hate mail?

The well-publicized financial and structural changes Groupon and LivingSocial have been going through are often cited causes of dislike. The press is quick to point out the negative issues with some daily deal sites. They typical point out things like spam complaints, a crowded marketplace of daily deals to choose from, “deal hoppers”, customers who hop from deal to deal and seldom become a regular customer.

Link/Page Citation


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3 Ways for you to help make Daily Deals work for your business

  • Know how the money works! – You must know how the numbers work in your deal. Understand what your average sale is and don’t try to exceed it with a daily deal. Also, be sure to negotiate credit card processing fees, as many of the daily deal sites will pick these up.
  • Follow up with your new customers! – As many as 60-75 percent of these daily deal customers are trying you out for the first time. It’s vital that you've a plan to coax them back for a return engagement! Offer another coupon. Other incentives to make sure you see them again!
  • Don’t go too big, too fast – Start cautiously. You can learn the ropes and not be swamped by the deals. Leave a bad taste in everyone’s mouth.

Daily deal sites aren’t dead, you simply need to know how to best use them for your small business.

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