In the last few years, daily deals have exploded and studies now indicate that as many as 44% of web shoppers subscribe or search daily deal sites. Of subscribers, 60% subscribe to more than one. On the flip side of this, many retailers are underwhelmed and say they would not try it again. So what should you do?
As with everything, I recommend making a plan, setting a goal, testing it, then repeating it. There is a reason that in baseball you get three strikes: sometimes it takes more than one swing to hit it out of the park.
One of the major reasons for doing a Groupon or Living Social deal is to reach new customers. You are paying handsomly to have access to the list subscribers so leave it up to them to publicize your offer.
DON"T post to Facebook, Twitter, and your newsletter. The last thing you need are your current customers getting a deal. If you want to reward your existing customers, have a 1 day 50% off sale. They will generate buzz for you and you won't have to pay a Deal site a huge percentage. One of our customers does this a couple of times a year (generally at the end of a season) and their results are phenomenal.
One technique to attract more users with your Groupon offer is to target it in areas where your name may not be as well known. Use the offer as shock troops to open a new market. If you have stores in a few states or provinces that build your brand awareness through traditional channels, target your Groupon on the other side of the country. Create buzz where it doesn't already exist.
We have seen one of our customers do this with laser like precisions and exceptional results.
Another good technique is to look beyond the top tier flash deal sites. There are many daily deal systems targeted towards specific demographics or regions. You can sometimes get better terms and since a huge portion of the expense is based on the success of the deal you can get the same number of visits.
I also found this interesting infographic on daily deals
which has some interesting statistics about some of the challenges the industry is going to have to deal with in the coming year.