7 Sins In The Daily Deal Industry And Their Remedies
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7 SINS IN DEAL INDUSTRY AND THEIR REMEDIES Over the years deal industry has witnessed many changes, these changes happen as a part of how industry is learning from its mistakes and evolving itself to a more sustainable revenue model. This article is intended to provide a brief understanding of the 7 most deadly sins or mistakes committed in this industry and how to tackle them. Almost every market leader in the deal industry was indulging in getting more customers without realizing the fact that primary intention of customers who visit the sites are just to get the best deal, they have the habit of grab- bing the best deals no matter who offers it. Ideally the sites should run campaigns like loyalty pro- grams that can generate loyal customers and serve them better which help cultivate sustainable growth in the long run. 01 NOT HELPING MERCHANTS RETAIN CUSTOMERS Traditional deal sites used merchants just for the purpose of making money by charging them up to 50% commis- sion. Once these merchants realised that running deals only earns them customers interested only in discounts and not for generating repeated sales, they started to stop running the deal campaigns. The deal sites have identified this issue and started to empower merchants with various tools which will help them retain customers. One such example is Groupon Reward program and merchant mobile applications which will help them have control over the customers they earn through deals. 02 NOT BEING DIFFERENT The biggest drawback of Deal industry is its low cost of entry your competitors can enter directly to your market without any difficulty. To solve this, market players have started to focus on areas where they can differentiate themselves from the competitors and take advantage of it. Examples worth mentioning are focusing on niche product deals, Travel deals and adopting an omni-channel strategy. 04 NOT GOING MOBILE In a report by Google, 66% of smartphone users are using their smartphones to search for goods and services and 49% are redeeming coupons. So the trend is clear: either go mobile or expire. Market leaders like Groupon claims that more than 50% of its transactions were completed on mobile devices in Q4, 2013. Groupon is now offering location based real. time 06 LACK OF FOCUS ON LOYALTY Having a common approach is no longer possible. Research says that consumers’ value personalization across multiple channels, with 67% of consumers saying it is important for email to be personalized followed by social media (44%) and SMS (40%). With 44% of consumers no longer respon- sive to marketed messages, as a businesses you are com- peting for relevance. The way to survive is by understanding your target customer’s thoughts and actions using advanced social opportunities exploring tools, consumer analytics and so on. 05 LACK OF PERSONALISATION In order for a business to earn sustainable growth it should provide value to the stakeholders they are associated with. Certain traditional deals like deals for restaurants and hotels didn’t add much value to the stake holders since it didn’t help them earn additional revenue by selling unused inventory or filling up seats during off peak hours. To add value to such deals you need to have tools like slot booking which will help hotels and restaurants choose which period of time they want these deals users to avail their deals. Slot booking will help hotels and restaurants in real-time inventory management so that they can use deals to utilize unused inventory as and when it arise. 03 SERVICES WITHOUT VALUE ADDITION Push marketing messages are now things of the past with customers now empowered with tools that will let them see only what they want. One example worth mentioning is Gmail’s promotion filter which lets customers to view push mails only if they click on the promotion tab. Companies are now overcoming this by providing mobile apps which breaks the barriers of mail filters, and personal- ised content which has the capability to encourage direct engagement with your site. 07 ‘PUSH’ BUSINESS MODEL RATHER THAN ‘PULL’ oorjit.com/deal-solution World’s No:1 Deal Solution TM
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Over the years deal industry has witnessed many changes, these changes happen as a part of how industry is learning from its mistakes and evolving itself to a more sustainable revenue model. This article is intended to provide a brief understanding of the 7 most deadly sins or mistakes committed in this industry and how to tackle them.
Transcript of 7 Sins In The Daily Deal Industry And Their Remedies
7 SINS IN DEAL INDUSTRY AND THEIR REMEDIES
Over the years deal industry has witnessed many changes, these changes happen as a part of how industry is learning from its mistakes and evolving itself to a more sustainable revenue model. This article is intended to provide a brief understanding of the 7 most deadly sins or mistakes committed in this industry and
how to tackle them.
Almost every market leader in the deal industry was indulging in getting more customers without realizing the fact that primary intention of customers who visit the sites are just to get the best deal, they have the habit of grab-bing the best deals no matter who o�ers it.
Ideally the sites should run campaigns like loyalty pro-grams that can generate loyal customers and serve them better which help cultivate sustainable growth in the long run.
01NOT HELPING MERCHANTS RETAIN CUSTOMERSTraditional deal sites used merchants just for the purpose of making money by charging them up to 50% commis-sion. Once these merchants realised that running deals only earns them customers interested only in discounts and not for generating repeated sales, they started to stop running the deal campaigns.
The deal sites have identi�ed this issue and started to empower merchants with various tools which will help them retain customers. One such example is Groupon Reward program and merchant mobile applications which will help them have control over the customers they earn through deals.
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NOT BEING DIFFERENTThe biggest drawback of Deal industry is its low cost of entry your competitors can enter directly to your market without any di�culty.
To solve this, market players have started to focus on areas where they can di�erentiate themselves fromthe competitors and take advantage of it. Examples worth mentioning are focusing on niche product deals, Travel deals and adopting an omni-channel strategy.
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NOT GOING MOBILEIn a report by Google, 66% of smartphone users are using their smartphones to search for goods and services and 49% are redeeming coupons. So the trend is clear: either go mobile or expire.
Market leaders like Groupon claims that more than 50% of its transactions were completed on mobile devices in Q4, 2013. Groupon is now o�ering location based real. time
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LACK OF FOCUS ON LOYALTY
Having a common approach is no longer possible. Research says that consumers’ value personalization across multiple channels, with 67% of consumers saying it is important for email to be personalized followed by social media (44%) and SMS (40%). With 44% of consumers no longer respon-sive to marketed messages, as a businesses you are com-peting for relevance.
The way to survive is by understanding your target customer’s thoughts and actions using advanced social opportunities exploring tools, consumer analytics and so on.
05 LACK OF PERSONALISATION
In order for a business to earn sustainable growth it should provide value to the stakeholders they are associated with. Certain traditional deals like deals for restaurants and hotels didn’t add much value to the stake holders since it didn’t help them earn additional revenue by selling unused inventory or �lling up seats during o� peak hours.
To add value to such deals you need to have tools like slot booking which will help hotels and restaurants choose which period of time they want these deals users to avail their deals. Slot booking will help hotels and restaurants in real-time inventory management so that they can use deals to utilize unused inventory as and when it arise.
03 SERVICES WITHOUT VALUE ADDITION
Push marketing messages are now things of the past with customers now empowered with tools that will let them see only what they want. One example worth mentioning is Gmail’s promotion �lter which lets customers to view push mails only if they click on the promotion tab.
Companies are now overcoming this by providing mobile apps which breaks the barriers of mail �lters, and personal-ised content which has the capability to encourage direct engagement with your site.
07 ‘PUSH’ BUSINESS MODEL RATHER THAN ‘PULL’
oorjit.com/deal-solutionWorld’s No:1 Deal SolutionTM
