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Daily Deal Site Marketing

Who can resist the temptation of getting a good deal? Why pay the full price when you can actually shell out just a fraction of the cost? This is the driving force behind the success of daily deal sites that have cropped up – all offering the best deals for food, services, hotel accommodations, massages, and so much more. As one daily-deal site ( put it, they “offer up your bargain of choice… at an astronomically discounted price, helping you stretch your hard-earned dollar to infinity and beyond.” Who could say no to such a promise?

Ever since the phenomenal success of Groupon (a daily-deal site that has been valued at a whopping $1 billion), a lot of other daily-deal sites have cropped up like mushrooms. Aside from Groupon, some sites that have followed suit include Yelp, Living Social,, Yipit, At Cost and so on.

How Do Daily Deal Sites Work?

The concept is basically simple. Most of these sites work by getting the customer’s location and emailing him with the newest and hottest deals in that location and nationwide. These deals are offered every day. For Groupon, the requirement is that there should be a minimum number of buyers for the deal to push through. There are also daily deal sites where the more people sign up, the bigger the discounts.

Other sites have similar approaches, with slight variations. But essentially, the customers are buying discount vouchers. Some sites also enable them to earn credit or points by inviting friends to join the site and buy into the deals.

As a merchant, daily deal sites can do wonders with drawing in customers to your business. This is done by posting your business’ deal offerings in the site. Usually, the site will target local subscribers specifically. A number of the daily deal sites will only require payment for every generated sale. There are also those that will charge for a percentage of the sales.

Local business owners may also benefit from other elements of a daily deal site: namely, easy purchase/distribution system (the customer can easily make an impulse buy and just charge it to his or her card), referral system and incentives, extensive use of social media such as Facebook, and vouchers that have expiry dates for use.

Will Daily Deals be good for your business?

The question is, is your business ready to jump into the daily-deal marketing strategy? Also, will it work for your business?

Let’s take a look at the advantages and the disadvantages.

Advantages of working with a daily-deal site:

–          Allows you to considerably direct foot traffic to your business. This is particularly helpful for small businesses that have yet to establish themselves and win a solid customer base. When compared with other advertising options, the return of investment in working with a daily-deal site ranks as one of the best.

–          Helps you win customers without considerable cost and effort on your end. Sites that have Cost Per Sale policies provide you with exposure and mileage even as you don’t have to shell out anything in upfront costs. Also, aside from providing you with very cost-effective advertising, these sites will require a little investment of time. All you need to do is create the offer, write the copy, design the online offer and set the limitations of the deal. The daily-deal site will do the rest for you.

–          Enables you to generate cash flow in a jiffy. Since daily deal sites end fairly quickly, you can easily generate cash if your deal offering turns out to be a success. You will certainly enjoy the cash flow that is raised in just a few days.

–          Allows you to study success of the deal offering since results are measurable. You can more easily determine how well your campaign is received by customers, something that other advertising options are not able to do (think TV ads, radio or print ads).

–          Increases your exposure and gain mileage in social networking sites. Get people to “like” you and “follow” you – in Facebook, Twitter and other similar sites, that is. People are quicker to click the “Like” button because of the deal you are offering. And the kind of exposure you get is exponential – people who see the deal may share it or re-tweet it to friends. This allows you to create more buzz regarding your business without spending a lot of bucks.

–          Helps you reach your desired customers. Mainly, people who join daily-deal sites are people who are ready to buy. They are internet savvy and are active online (as well as offline). They have the ability to share their experience about your business to their friends. This is the kind of customers you want to reach and retain.

Disadvantages of daily-deal sites

You should also be aware that there are disadvantages. Knowing these disadvantages can help you find a way to work around it.

–          Fewer profit per customer. Since you are already offering your products or services at a discount and there may be additional charges tacked on by the daily-deal site, you can potentially make far less than what you’d normally make had the sale had been generated in other ways.

–          Negative effect on the brand. Customers see your company in a certain way. Depending on your product, offering discounts may actually reduce your brand’s value in the customer’s minds – that you are somehow “inferior”. At the back of their minds, they may be thinking, “There may be something wrong with the product, since they are on sale.” Also, you may be lowering the price they are willing or expect to pay the next time they avail of your product. So, if you are offering a premium product or service, daily-deal sites may not be for you.

–          May give you customers you are ill-prepared to handle. Is your business ready to handle the influx of customers? If not, you may have a lot of dissatisfied customers in your hands. This will result in negative reviews which will hurt your business. There may be issues of overbooking and a decline in service levels.

–          May give your customers the wrong mindset. The thinking is, they’re there to enjoy their savings. This will mean that they will go to your business to redeem their deal and not spend for other items you have. For restaurants, this can also mean lower tips for your waiters.

–          Pressure to maintain exposure and retain customers. The exposure you have with daily-deal sites may be a double-edged sword. How do you maintain the interest of your customers after the deal? How will you ensure that your customers remember you and their experience with your business?

–          Reduced employee morale. With more customers (who tend to tip less), your employees with have more work.

Additional tips

Now, having seen the advantages and disadvantages of daily-deal sites, here are some things to remember if you want to work with daily-deals sites.

–          Work with the right sites. There are a number of daily-deal sites that cover a niche – determine if reaching these niches is also fit for your business. You also need to make sure that the sites have a good reputation so that you can protect yourself and the image of the company when the daily-deal site “misbehaves”. Also look for sites that have a considerable following.

–          Offer reasonable packages. Don’t yield to the temptation of giving “offer your customers can’t resist”. This may actually cost you more by way of lost profit.

–          Make the offer time-sensitive and set restrictions. If you don’t have a time limit for redemption, the vouchers will tend to just stay inside the customer’s wallet. Also, make sure that the customers understand the conditions and the fine print so that they fully understand what they’re buying and what they can expect.

–          Avoid having deal offerings too close to each other. The customer will just think, “I’ll wait for the next offer.”

–          Don’t sell too much of one deal offering. You may find yourself overbooked. Only sell what you can handle.

–          Follow customers up and provide great customer service. This will help keep your customers coming back to you so that you strengthen your customer base. The customers will come back if they are satisfied with what you had to offer – and they’ll be paying in full the next time!

How Adaptivity Pro can help

It takes a strong understanding of what makes daily-deals tick and how you can “make it tick” for your business. Adaptivity Pro can help you set up your daily-deal, as well as analyzing the success of the offer. Adaptivity Pro is a Salt Lake City web design company. It also deals with Utah SEO, Utah PPC marketing, copywriting and blog content services.

Adaptivity Pro is committed to providing more results (in terms of leads, traffic and of course, revenue) and websites and blogs put up in very little time.

Article Provided By:
Adaptivity Pro Web Design
Salt Lake City Utah
P.O. Box 951049
South Jordan, UT
o: 801-512-2006