All Daily deals
Throughout the last year
or two the 'daily deals' phenomenon has gone from to strength to
strength as well as for now there doesn't seem to be a conclusion around
the corner to this booming business.
Many people are chances are familiar with the idea of daily deals however for the ones that aren't, here is a snapshot;
Daily deals
- The daily deals / deal for the day website everyday promotes an offer
offering large discounts on such things as restaurant meals, spa's,
beauty treatments right through to sky diving and holidays. The sale
typically gets activated whenever a number of customers join the daily
deal, this 'deal tipping' concept is called group buying and implies
that by ensuring a higher volume of customers the business enterprise
will offer the large discounts.
From a business
perspective the concept also is useful. Businesses need customers and so
are often needed to spend massive levels of money out of their
marketing budget on attracting those customers. A 'daily deal' can be a
great solution for cost effective marketing since the business really
doesn't must spend anything. Instead they assist the daily deals company
to create a deal / offer that may be emailed to the daily deals
database of shoppers. These customers then join the daily deal getting a
substantial discount about the regular services from the business.
The
business gets free promotion to any or all of the daily deal websites
customer base which can regarding a few of the deals sites be around
100,000 people or more (national exposure deals get delivered to much
more). Some of these then buy and be customers of the business and then
hopefully take pleasure in the experience and return being a top dollar
buying customer or tell their friends concerning the great experience.
As
an example 'Sensational Sushi Restaurant' in Surry Hills really wants
to generate new clients for their restaurant, they work with the deals
site and choose the next deal, 60% discount on the 2 course meal along
with a wine. This deal is shipped to any or all with the deal websites
customer base in Sydney's Inner West, 150 find, then over the next Half a
year (depending on the timeframe the deal is created for) they redeem
their deal on the restaurant.
From the customers perspective, they get a great
This
group buying enterprize model was developed by Groupon in the US in
November 2008, they actually have daily deals websites around the globe
and therefore are estimated to be worth between 15-25 Billion USD.
Despite
these staggering numbers there are many people that believe that the
deal-of-the-day style model that Groupon created is beginning to
demonstrate cracks. The growing quantity of deals sites, competition
within the industry and sheer sum of money being made has triggered some
sites over selling the deals, over whelming the firms with much more
customers compared to they can comfortably handle.
All Daily Deals One Place
This
over selling of deals has led to the customers not being able to book
their activity for example the meal at the restaurant for weeks or
months, when they finally do manage to make a booking they may be then
treated as second class citizens since they are presenting the deals
voucher. The entire experience could be off putting and leads to the
customers never returning but in addition telling their friends and
relatives which further damages the company.
