Everyone loves a good deal. With that, it comes as no surprise that the company that really started it all, Groupon, began as a small idea that quickly grew big to encompass more than 150 North American markets with over 35 million users globally. Furthermore, the site was valued at $1.35 billion in 2010.
I finally got on board with the company and saw what all the fuss was about. Soon after, I started paying attention to the business of daily deals. My conclusion is that if you’re in the service business, you’ve got to get into the daily deal business. There are no exceptions. It’s a brilliant marketing tool that gets you more repeat and new customers, and more visibility.
The Shocking Stats: How Relevant Are Daily Deals?
Aside from repeat business and new customers, there’s one law of sales that always comes into play here, and that’s when in the face of a good deal buyers will often make a purchase beyond the offered deal. A June 2011 study by Rice University supports this. Findings show that more than 77% of deal buyers spent more than the deal’s value. The same year, additional studies by ConsumerSearch.com and The About Group Research indicated 68% of daily deal buyers returning the business that offered a deal – even without another discount.
Where You Can Offer Daily Deals
A strong argument for the success of daily deals is the popular belief in a poor economy. The idea that money is not readily available and that jobs are supposedly hard to come by makes even the least frugal of people flock to a good deal. What makes individual deal platforms successful is the ease in which Average Joe can use it. And here’s where Groupon excels. Its website is incredibly easy to navigate and you’re able to tailor deal findings to your own interests and location. Groupon makes it easy for users by sending them email alerts of deals that fit within their chosen interests.
But beyond getting on board with Groupon, there are other ways to cash in on daily deals.
Yelp – The popular user feedback site also allows sellers to offer exclusive deals.
Twitter – Twitter is the best on the spot deal making site. Give users the location for your great deal or even a keyword to use when making a purchase. You could also do the same with Facebook, but it’s Twitter that lets you hashtag keywords and phrases so you can attract those who aren’t following you but who may stumble across you through a search.
LivingSocial – City specific daily deals for local business. The site also encourages sharing with other buyers by offering a rewards incentive. You can share a link after you’ve bought a deal. If three other people make a purchase from that link, your deal is free.
Travelzoo – While many travel sites offer deals, Travelzoo makes it a priority that their readers know about them. They often send newsletters out with the top 20 deals of that week. If you’re in the travel and hospitality industry, this is a can’t miss site.
Beget – Daily deals from hundreds of local merchants.
Green Box Top – A daily deal site for the eco-conscious.
Additionally, there are many sites that offer city-specific deals, such as LA’s BuyWithMe, which offers exclusive LA-based deals to subscribers. If you’re in a major metropolis, you may want to do a quick Google search for “daily deals + your city.”
And last but certainly not least, you definitely want to check out DealADaySites.com, which gives you the scoop to a mega list of daily deal sites. Just remember that the key isn’t to sign up with everything but to offer deals on the most popular sites and those that are relevant to your city and industry.