To Deal or Not to Deal?
In November 2008, Groupon launched their daily deal site and a new generation of online coupons began. Three years later, there are thousands of daily deal sites, from smaller companies serving their local market to large corporations offering international deals. And so far, there seems to be plenty of demand to keep everyone “dealing.”
According to a survey by eMarketer, household usage of digital coupons has almost doubled in the last five years. The same report estimates that around 88 million US adults will redeem an online coupon by the end of 2011. And when you consider that more and more shoppers are making their purchasing decisions online before going to a physical store, daily deals have definitely become a compelling option for investing your marketing dollars.
But before your company signs on for a daily deal feature, here are a few more things you need to consider:
- Who typically subscribes and uses online coupons? The typical online coupon user tends to be affluent, highly educated and over the age of 55. Does this sound like your target audience?
- How does a daily deal align with your overall marketing strategy and objectives? Take a look at your marketing and sales goals and determine what you want to accomplish by being featured as a daily deal. Is your primary objective to increase brand awareness, drive traffic to your site, support a product launch or other?
- What type of offer will best fit the daily deal model? Think about which of your company’s products or services align with the demographic described above. How can you tailor your message to this audience?
- How much of a “deal” are you willing and able to offer? It’s important to understand what the potential exposure is worth to your company.
- How will you measure success? Make sure the daily deal service you use has metrics in place to provide meaningful post-deal data.
Daily deals offer great potential for brand exposure. But to maximize your investment, make sure you approach the opportunity strategically, just as you would any advertising vehicle.
Comments
Have you heard of Deal Wallet? It’s a system to organize all the deals you buy from different providers to help you keep track of them, i.e. use before they expire. And, it also lets you sell ones that you can’t use, at a price that you chose.
Here’s a good article discussing the implications of this new online coupon feature - http://www.fastcompany.com/1761866/dealsgoround-deal-wallet-daily-deals-groupon-livingsocial
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