Marketing to Women: How to Avoid Daily Deal Disaster

November 1, 2012 § Leave a comment

Restaurant Hospitality provided a great checklist to use when running a daily deal (Groupon, Living Social, and the 100 others available in your community).  There have been some businesses overwhelmed with daily deals gone bad.  The two categories that seem to benefit the most from daily deals are restaurants and beauty treatments/products.

Best Advice:  Set an objective for what you want the daily deal to accomplish.  Do you want incremental business during a down time?  Do you want to encourage trial of a new product or a larger purchase?  Do you want to encourage frequency? Do you want to appeal to a new target audience. Match your offer to your objective. 

Some tips for Daily Deal marketing –

1.  Payment.  Find out from the daily deal provider when you will receive payment.  The big players usually take at least 20 days to deliver the first payment.  Smaller providers might provide better terms.

2.  Targeting.  Who or what are you targeting?  Dayparts such as lunch business or dinner business?  Locals versus tourists?  New products or core inventory?  Most daily deals should be to enhance your business and encourage additional sales.  Do you have a plan in place to convert users into an additional visit or purchase?

3.  Promotion.  Daily deal providers can do additional promotion for their offers like television and print advertising. See if your provider will provide extra promotion.   And you might want to make sure you broadcast your offers on social media. Daily deals and social media like each other.  A recent study by Edison and Arbitron found that daily deal users are more likely to use social networks. The study reports the average daily deal user had about 255 friends on Facebook.

4.  Pricing.  I really like the example given for restaurants.  Look at your average check or  transaction. If your objective is to stimulate sales during a down period and the average check is $40, you might run a $15 offer for $30 worth of food and drink.  If you are a provider of beauty products, you might offer a new high margin service/product with a low product cost.

5.  Service.  The last tip is making sure all of your employees are knowledgeable about the offer and provide the customer with personalized service and high quality.  Nothing turns off a customer more than a server or sales associate that is indifferent,  knows nothing about the offer and seems put off by the redemption offer.

6.  Engage New Users.  Make sure you track your new business, making sure you get their emails so you can continue to communicate your offers to them.

Daily deals may be still by growing but it is among the big players.  According to BIA/Kelsey, United States spending on daily deals, instant deals, and flash sales is expected to hit $2 billion in 2012 and continue to grow to more than $4.2 billion in 2015.  However, one-third of all daily deal sites have disappeared.  Research by Foresee, conducted in November and December 2011, shows that 60% of visitors of the top 40 websites were enrolled in at least one daily deal site. That’s a decrease from the previous spring, when the figure was 65%. And the percentage of subscribers who had purchased a daily deal over the last 90 days was shrinking, from 67% in the spring of 2011, to 63% in the early winter of 2011.

Read more:



Tagged: , , , , , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

What’s this?

You are currently reading Marketing to Women: How to Avoid Daily Deal Disaster at The Lipstick Economy.


%d bloggers like this: