Daily Deals: Should My Business Participate?

Would Daily Deals like Groupon or Living Social work for me?

There are so many Daily Deal sites popping up everywhere.  The original one – Groupon to all the local ones like Fox 12 Daily Deals.  I get this question a lot:  Can my business successfully use a Daily Deal site to grow my clientele? Would this be a great marketing strategy for my business?

Marketing with these types of websites really works for the right type of businesses.  The main deal is usually sold at a loss for the company.  The extreme discount is what brings in the new customer or client.  Where the money is made is in the follow up with that new customer.  How will you get that customer to return?  How will you get that customer to refer their friends and family?  How will you get that customers loyalty?

Is there Profit in Daily Deals?

The profit on a Daily Deal comes after the initial visit.  A Daily Deal is an extraordinary opportunity if you can get that new client to return and refer.  Some ways to make this happen:

• Provide a coupon to use on a next visit
• Provide a reason to have them return ~ excellent customer service, excellent food, excellent whatever
• Up-sale the initial offer ~ make the offer for a basic version of your service/product and up-sale the new client
• Provide referral rewards

If your business is not set up to up-sale or promote quick return visits or referrals then the daily Deal type marketing is not for you.