Since the advent of the Daily Deal, there has been an ongoing discussions as to the value that daily deals bring to a retailer or service provider. The potential for new customer acquisition is exceptional, but do they make sense beyond that? Do we risk training the consumer to only shop for the lowest cost? Do we put our businesses at risk with large volume spikes and very low (or negative) profitability by chasing the total revenue generated by Daily Deals?
Offering a product at 50/60/70% off list price may be sensible for a business trying to drive volume in the off season, but paying the daily deal site a 50% or more share of the total deal revenue often results in financials that are less than optimum. Considering that the cost of customer acquisition is $15.00, a solid argument can be made that utilizing Daily Deals to harvest a large crop of email addresses for active consumers is a good idea. However if many or most of those consumers are addicted to shopping only on price, the equation may be a bit skewed.
There is no clear answer for “to Deal or not to Deal?.” It is incumbent on each business to decide for themselves whether this tool is one they wish to incorporate into their marketing plans.
There has been enough interest among Ecce Terram clients that we decided to add a Daily Deal specific tool set to our Mobile and Desktop clients.
It is now possible to offer Daily Deal Coupons using our software. In the latest Desktop Client V2013.12, we made some major improvements that enable our customers to focus on the opportunities and lower the risks inherent in Daily Deals.
First, Daily Deal Support is limited to the Desktop Client and will soon be featured in our Mobile Apps. Differently than web-based Clients, the Desktop & Mobile Clients are Applications, that have already proven that they build Consumer Loyalty, unlike online applications where the nearest consumer is only a click away. The Desktop Client enables consumer to manage projects and create stories over a period of time. The native Mobile App with the consumer at all times and make it easy to send gifts or preserve their memories where and when they choose.
So how does it work?
It is now possible to place a Daily Deal Button on the Portal Pages to make it easier for the customer to start his order directly using his Daily Deal Coupon.
The Daily Deal Wizard manages the Promotion Time. If the promotional time has passed, the Daily Deal Coupon retains its the purchase value, but it no longer offers the promotional value.
The Daily Deal Wizard shows only the product(s) that are available through the Daily Deal. This reduces Customer Service costs, because the consumer is not confused about which products can be ordered as part of the Daily Deal.
This capability permits you to target a new product offering with the Daily Deal, or drive consumption of a particular item that may be in overstock.
The option “Order as Guest“ is not shown to the Daily Deal consumer. The consumer is required to register to take advantage of the Promotion as a registered user.
The Payment Process is streamlined with the new payment method „Pay with Coupon“.
The Daily Deal Voucher entered in the first step is automatically applied to the order. The consumer can still order more products or change to a faster shipment method and pay only the difference in cost.
Of course, the Daily Deal Promotion is a limited time offer and can be replaced using the Coupon Wizard for promotions distributed to your newly acquired customers via E-Mail or other marketing channels.
Give it a try and generate new repeat customer business rather than educating them to wait for the next deal – maybe from your competitor.