Daily deal sites have become a hot trend for small and large businesses looking to develop a customer base and drive attention to their business and products. With a short amount of time spent, business owners can reach a large target audience who often will share the daily deals with friends and family via social media outlets and word of mouth. This is great tool to attract Holiday traffic and capture a new customer base.
Daily deal sites, such as Groupon, Living Social, and Google Offers have been developed for businesses to offer a “daily deals” These deal sites work by partnering with companies who wish to advertise their promotion on their website. Deals run for a set amount of time based on the desire of the business. Maximum number of deals can be set to avoid going over a comfortable threshold.
The major attraction of daily deal sites is the availability of an already established market of deal purchasers who are looking for savings. For the savvy business owner, this can be a time to introduce a product line at a great value to the customer that will transition into permanent lifetime customers. While the deal purchases generate revenue for the company, for many it is viewed as a marketing tool that has a higher probability of being noticed than many traditional marketing options.
Once you have decided to take advantage of a daily deals site, it is necessary to consider the intricacies of the daily deals that is best suited for your company. The critical first step is to determine what product you feel will sell best and will be the best representation of your business and product line. The product or service should be the most eye catching, most self-explanatory, and easiest to sale with the least amount of additional explanation. Daily deals sites are a collection of products and services, so it is important to grab the potential customer’s attention quickly. One of the most popular product choice strategies is to use overstocked products that have the potential to sit on the shelf to the point of a loss. Using this strategy, companies can use daily deals whenever inventories need to be cleared out quickly.
Setting a price point is the second most important consideration. The price point should be as low as you are comfortable with, taking into consideration your personal goal for the daily deals. If the goal is primarily marketing your products and business, then setting the lowest acceptable price would be a strong consideration taking into account the amount of inventory. With a large amount of inventory, the price can potentially be low enough to just break even. With a more limited inventory, a slightly higher price may be warranted. If the goal is purely to generate income, then a higher price point should be considered. In this scenario, you will need to consider how high a price you can ask for that will generate the most sales within your inventory level. If the goal is to minimize loss on potentially excess inventory, then a balance must be determined to develop a price point that allows the highest revenue while ensuring all inventory is exhausted. Ultimately at this stage, many factors must be considered .
Once a product and price point have been determined, the next point is to consider the most appropriate daily deals site. Groupon, Living Social, and Google Offers are three of the most popular and for good reason. Each has a strong following. Each site should be consulted to strike the best deal. Things to consider are how you will handle refunds. Will you offer a 30 day guarantee, or exchanges? How will you handle delivery, same day shipping, express mailing? If your offering a service, you need to be clear as to when it can be used and any special considerations. What is the expiration date to use the deal? Companies that offer classes frequently cap class numbers, so be clear.
The number of items should be capped at a level that makes sense for your business based on inventory levels or ability to offer the service. Daily deals sites provide with 1000-10000 coupon codes that must be imported into your Wazala store. These are all unique codes that are of a single use and deduct the full amount of the transaction since payment is made with the daily deals site not your own store.
Lastly be ready for a surge of orders. Ensure that you have enough staff on hand to handle order fulfillment in time for christmas day delivery. This is also the time to monitor social channels for complaints or compliments. Ensuring things are set up correctly and test your ordering system thoroughly before going live is also a must.
After the dust settles, it’s time to implement a followup strategy to make these one-time customers into permanent ones. Customers need a reason to come back, so be sure to give them one.
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