Daily-Deal Study: Good for Customers, Bad for Businesses

The study, conducted at Rice University’s Jesse H. Jones Graduate School of Business by associate professor Utpal Dholakia, polled 150 businesses that did Groupon deal offers in the past year. The results: About one-third of participating businesses said their daily-deal offers were unprofitable

More than 40 percent said they wouldn’t do a daily deal again. Business owners who were unhappy with their deal experience reported Groupon deal users didn’t buy additional items beyond the deal offer. They also reported the Groupon customers tended to be one-time visitors and didn’t become repeat customers. [Más…]
Some of the study’s recommendations on how to make a Groupon promotion successful:

* Design your deal so that it will appeal to new customers and not cannibalize sales to existing customers.
* Know whether your business type is well-suited to benefit from a daily deal — the study found restaurants and education companies fared the worst, while salons and spas were the most successful.
* Offer the deal on merchandise you’re looking to unload or underutilized services you want to grow
* Design your deal to build a customer relationship. Make it good for $20 off on each of your next three visits instead of $60 off the customer can spend all at once.
* Avoid offering a discount off the total bill — you may end up giving away too much margin, as you aren’t in control of the size of your discount.

Has your company done a daily-deal offer? Would you? Leave a comment and let us know what you think about daily-deal promotions.


If you haven’t turned on a computer lately, the hottest thing in online marketing is the daily deal. Mega-successful company Groupon started this trend, and a million imitators have sprouted. Another daily-deal startup, Woot, was recently snapped up by Amazon.com for more than $100 million.

So the business of being a daily-deal company is great. But how are those daily deals working out for the businesses that offer them? A new study says: Not so hot.
For the uninitiated, a business that offers a daily deal through one of these sites must provide a substantial discount — often 50 percent off. Then, a minimum number of customers must buy the deal, prepaying up-front and getting a coupon they present to the company. If not enough customers buy into the deal, it’s cancelled. The tradeoff is a guarantee of a large volume of new-customer traffic in exchange for the discount.

The study, conducted at Rice University’s Jesse H. Jones Graduate School of Business by associate professor Utpal Dholakia, polled 150 businesses that did Groupon deal offers in the past year. The results: About one-third of participating businesses said their daily-deal offers were unprofitable

More than 40 percent said they wouldn’t do a daily deal again. Business owners who were unhappy with their deal experience reported Groupon deal users didn’t buy additional items beyond the deal offer. They also reported the Groupon customers tended to be one-time visitors and didn’t become repeat customers.

Some of the study’s recommendations on how to make a Groupon promotion successful:
  • Design your deal so that it will appeal to new customers and not cannibalize sales to existing customers.
  • Know whether your business type is well-suited to benefit from a daily deal — the study found restaurants and education companies fared the worst, while salons and spas were the most successful.
  • Offer the deal on merchandise you’re looking to unload or underutilized services you want to grow
  • Design your deal to build a customer relationship. Make it good for $20 off on each of your next three visits instead of $60 off the customer can spend all at once.
  • Avoid offering a discount off the total bill — you may end up giving away too much margin, as you aren’t in control of the size of your discount.
Has your company done a daily-deal offer? Would you? Leave a comment and let us know what you think about daily-deal promotions.

http://blog.entrepreneur.com/2010/10/daily-deals-good-for-customers-bad-for-businesses.php

 

Autor: Gabriel Catalano - human being | (#IN).perfección®

Lo importante es el camino que recorremos, las metas son apenas el resultado de ese recorrido. Llegar generalmente significa volver a empezar!

GENTE COSMO

LIFESTYLE - by Esther Herrero

Being Your Brand

Branding and Strategy for Business and Life

Cruces, Sol y La Imaginación

Cuando la imaginación y la creatividad suman infinito

tranquicomix

fanzine bejarano de historietas hecho en los 80

A Stairway To Fashion

imagination is the key

Vinod833's Blog

This WordPress.com site is the bee's knees

Apasionada de las Redes Sociales

Compartir conocimientos 2.0 y Marketing Online

Zona de Promesas

Blog de Tecnología en Español - Internet - Redes Sociales - Entrepreneurship - Innovación

Top Master | Blog

LOS PROGRAMAS DE MBA Y POSTGRADO MAS INFLUYENTES DE TODO EL MUNDO

La realidad alterna

Poesías, relatos, diario de sueños

Unencumbered by Facts

Taking unsubstantiation to new levels

PsicoEmocions Blog

Un Pont entre la Psique i les Emocions

TEA PTLS NACHO

AUTISMO.TEA..PTLS

Comunicación & Marketing

De Lilian Lanzieri

Xtratexia

Dirección estratégica para la vida

StellarHIRE Partners

Founding Partner, StellarHire Partners - Executive Search Consultants. Recent engagements include Eloqua, SFDC, Tibco and Veeam.

ivanbrunpr's Blog

4 out of 5 dentists recommend this WordPress.com site

BLOGTEC

Noticias de Tecnologia.

T a l e n t o  en  E x p a n s i ó n

Gestión de personas y transformación digital para las organizaciones líderes de la Era del Conocimiento

Two Leaves Tea SPAIN

Great Organic Tea! ✫✫✫✫✫ Te Organico en Piramides

Ideas para la clase

Experiencias creativas en la clase de español.

Little Grey Box

Travel Well

No solo los 80's

La mejor música de la historia

Molly Balloon's Blog

Identity + Dressing + Colour

El OJO PUBLICO. / Глаз общественности

Ver para contar & contar para ver. / Чтобы рассказать

Think Creative Idea Growth Hacking

Expertos en estrategia y auditoria de marketing

The Coaching Alliance

El camino hacia el éxito

Erick Lovera

Mi Pasión en un Blog

Estampas de México.

“Un fotógrafo tiene que ser auténtico y en su obra, debe expresar emociones, provocar reacciones y despertar pasiones.” ~ Javier García-Moreno E.

Natalia Gómez del Pozuelo

Escritora y formadora en comunicación

aloyn

Alimentación, ocio y negocios, ALOYN, es un Grupo dirigido a Directivos y Propietarios de empresas, interesados en el mundo de la industria de alimentación y bebidas. Tanto por la parte de la industria productora como por la parte de la industria consumidora y/o distribuidora (Distribución Comercial, Horeca, Vending, Venta Directa, etc). También nos interesan las actividades ligadas al agroturismo y el enoturismo como magníficas actividades de promoción y difusión de la cultura gastronómica.

Blog de Jack Moreno

Un blog de Joaquín Moreno sobre recursos, literatura y ciencia ficción

Mashamour

Ensalada de Manjares

be.blog

be. Intelligent Multimedia Education

~~Mente en Gravedad~~

************************************************************************************************************

The Xtyle

Fashion Blog - Un Blog de Moda y Tendencias by Bárbara Sanz Esteban

aníbal goicochea

Tecnologías de la Información y Estrategia

A Waterfall of Sound

"Poetry is when an emotion has found its thought and the thought has found words." Robert Frost

Health & Family

A healthy balance of the mind, body and spirit

Style & Design

Fashion Trends and News

U.S.

News, Headlines, Stories, Video from Around the Nation

A %d blogueros les gusta esto: