Loyalty Rewards and the Daily Deal Industry

Over the past few years there has been a huge interest in companies and entrepreneurs looking to get involved in the daily deal industry and launch a daily deal website. I’ll be the first to say that it probably isn’t the wisest decision to compete with Groupon, but daily deal sites are launching all of the time and many of them are seeing quick success. How does that title strike you? I think it says a lot about the deal market and where it could be going. We’ve all observed experiences about how some providers who provide provides to deal sites get an increase of new clients, but only see those new clients one time when they use their voucher for a lower price. Which means the source possibly missing money on the real purchase, and definitely did not obtain a new do it again client. Sadly enough, many times someone does lose out in the deal formula. Being heavily involved in the daily deal industry, I always enjoy discussing the pros and cons of featuring a deal on a deal site with businesses who have either just ran a deal through one, or businesses thinking about running a deal. From each of my discussions, it has become obvious that one party involved in the daily deal seems to typically always lose. Over the holidays I was hanging out with a good friend who does floors and their business had recently just ran a deal through a major deal site. “The deal sold extremely well, the customers were very happy, our boss did really well and upsold a lot, but we had to work our tails off to keep up and it really stressed myself and all the workers out. We definitely lost on that deal and are not very excited for the next time our owner runs a deal, which is coming soon,” Trevor told me. In this particular deal, the workers got the bad part of the deal. The objectives of the commitment compensate design and everyday deal design are very carefully aligned; maintain clients (loyalty) and get new clients (deals). We at Daily Deal Builder see these two as having great synergy. Drive new customers and hold onto them by offering them repeat business deals. This model makes sense as long as the cost of acquiring a new customer is slightly less than the expenses incurred by offering deals. As the deal industry is constantly on the success and change, we will keep see carefully relevant sectors consolidating together. We see the deal industry and the loyalty reward industries slowly merging over the course of the next few years to create stronger customer/vendor relationships while still offering deep discounts to loyal customers through a loyalty deals program. Got ideas? Get in touch with us and let’s see if yours align with ours.