The Power of Daily Deal Sites

If I’ve learned anything in my time as a business owner, it is that experience is everything.  Every chance you get to interact with a customer, you also get a chance to give them a truly remarkable experience.  How do you create an experience though, for potential customers who have never heard of you?
While of course, an amazing web site is a great start, reaching those who haven’t even heard about you isn’t easy.  For many of our clients we’ve started advertising through Groupon and related sites.  Let’s talk about the experience of a Daily Deal site, and how it can help power your Social Media campaign.
The average deal on a site such as this might offer 40-75% off a product or service.  You’re essentially buying a gift card at a discount, and that gift card can be used at any time within six months of the original purchase.
Let’s take a look at the three big daily deal players in San Antonio.
Groupon – http://www.groupon.com/
Groupon is the first major Daily Deal distributor and uses a model where a certain number of deals must be purchased before “the deal is on”.  According to our sources, Groupon has over 70,000 e-mail subscribers in the San Antonio market.
The current leader in the market, many contracts with Groupon require that you not deal with any other daily deal sites for a period of three to six months.  To our knowledge, Groupon has never actually enforced this exclusivity clause.
Living Social – http://www.livingsocial.com/
Living Social is a newcomer to the daily deal market, formerly a mainstay in the social space with “Pick your 5” and social media polling.  Living Social offers a daily deal, with Friday’s deal running through the weekend.
What separates Living Social from Groupon is the social media influence.  Their “Me Plus Three” offer gives you the daily deal for free if you can get three of your friends to also purchase the deal.  This kind of affiliate marketing encourages the buyer to share their chosen offer with their friends on Twitter and Facebook, thus creating a market of what Seth Godin calls “sneezers” who spread your idea wherever their social networks allow.
Deal of the Day SA – http://www.dealofthedaysa.com/
Powered by local ABC Station (and our client) KSAT 12, Deal of the Day SA advertises your brand during Television broadcasts and delivers not just internet users, but television viewers as well.
Comparing the Daily Deal Sites
Like with all tools, it will depend on your needs which service you choose to advertise with.  Your product may be best served by the built in Television exposure of Deal of the Day SA, or the affiliate marketing aspect of Living Social may inspire your customers to spread your deal for you.
Groupon has the limitation of being the first to market, so Living Social and Deal of the Day SA were both able to improve on the concept with unique directions; however, Groupon still has the largest subscriber base by an impressive margin.
The Experience of the Daily Deal
What makes the daily deal such a remarkable experience is in its very design, it is a coupon you purchase for services, typically slightly above the normal ticket price of a meal, a service, or a product.  This encourages the customer to buy more than they would on a normal visit, because really that meal, for example, is already paid for.
If you have a fifty-dollar certificate for a meal at a restaurant, you’re more likely to try that appetizer; you’re more likely to help yourself to desert.  You’re getting an amazing price, so you’re much more likely to go all out on the menu.
Imagine that same customer on the return visit.  Now that they’ve had that great experience with your menu, they’re much more likely to order that appetizer again.  You’ve offered a discount sure, but now your customers have built up a habit they’re likely to continue on their next visit.
How would buying habits like that help your business?  How might people talking about your deal on Social Sites like Facebook and Twitter boost awareness of your brand?  How would you like hundreds of new customers who didn’t know you even existed a week prior?
Daily Deals are a great way to reach new customers, spread your message and improve your profits.  What will you offer?

If I’ve learned anything in my time as a business owner, it is that experience is everything.  Every chance you get to interact with a customer, you also get a chance to give them a truly remarkable experience.  How do you create an experience for potential customers who have never heard of you?

While of course, an amazing web site is a great start, reaching those who haven’t even heard about you isn’t easy.  For many of our clients we’ve started advertising through Groupon and related sites.  Let’s talk about the experience of a Daily Deal site, and how it can help power your Social Media campaign.

The average deal on a site such as this might offer 40-75% off a product or service.  You’re essentially buying a gift card at a discount, and that gift card can be used at any time within six months of the original purchase.

Let’s take a look at the three big daily deal players in San Antonio.

Grouponhttp://www.groupon.com/

Groupon is the first major Daily Deal distributor and uses a model where a certain number of deals must be purchased before “the deal is on”.  According to our sources, Groupon has over 70,000 e-mail subscribers in the San Antonio market.

Many contracts with Groupon require that you not deal with any other daily deal sites for a period of three to six months.  To our knowledge, Groupon has never actually enforced this exclusivity clause.

Living Socialhttp://www.livingsocial.com/

Living Social is a newcomer to the daily deal market, formerly a mainstay in the social space with “Pick your 5” and social media polling.  Living Social offers a daily deal, with Friday’s deal running through the weekend.

What separates Living Social from Groupon is the social media influence.  Their “Me Plus Three” offer gives you the daily deal for free if you can get three of your friends to also purchase the deal.  This kind of affiliate marketing encourages the buyer to share their chosen offer with their friends on Twitter and Facebook, thus creating a market of what Seth Godin calls “sneezers” who spread your idea wherever their social networks allow.

Deal of the Day SAhttp://www.dealofthedaysa.com/

Powered by local ABC Station (and our client) KSAT 12, Deal of the Day SA advertises your brand during Television broadcasts and delivers not just internet users as new customers, but television viewers as well.

Comparing the Daily Deal Sites

Like with all tools, it will depend on your needs which service you choose to advertise with.  Your product may be best served by the built in Television exposure of Deal of the Day SA, or the affiliate marketing aspect of Living Social may inspire your customers to spread your deal for you.

Groupon has the limitation of being the first to market, so Living Social and Deal of the Day SA were both able to improve on the concept with unique directions; however, Groupon still has the largest subscriber base by an impressive margin.

The Experience of the Daily Deal

What makes the daily deal such a remarkable experience is in its very design, it is a coupon you purchase for services, typically slightly above the normal ticket price of a meal, a service, or a product.  This encourages the customer to buy more than they would on a normal visit, because really that meal, for example, is already paid for.

If you have a fifty-dollar certificate for a meal at a restaurant, you’re more likely to try that appetizer; you’re more likely to help yourself to desert.  You’re getting an amazing price, so you’re much more likely to go all out on the menu.

Imagine that same customer on the return visit.  Now that they’ve had that great experience with your menu, they’re much more likely to order that appetizer again.  You’ve offered a discount sure, but now your customers have built up a habit they’re likely to continue on their next visit.

How would buying habits like that help your business?  How might people talking about your deal on Social Sites like Facebook and Twitter boost awareness of your brand?  How would you like hundreds of new customers who didn’t know you even existed a week prior?

Daily Deals are a great way to reach new customers, spread your message and improve your profits.  What will you offer?