How to structure your daily deal? Part 1. Choosing a deal site
I am frequently asked how people should structure their deal as if i am some type of deal shaman that can predict if the price point you selected will return a profit, bring in only the finest human beings that always overtip and never leaves less than a 4 star review on yelp. I can't do that, but what i did want to do is create a series of blog posts that can give a merchants a playbook on how to successfully create a successful daily deal campaign.
Choosing the right daily deal site is one of the most important decisions you can make when choosing to do a daily deal. There are literally hundreds of companies. You can break down the deal sites in a few categories.
They cater their deals to connect merchants and consumers in a specific niche. These companies like family finds, doggyloot, and greenerdealz. They will typically deliver lower volume, but a higher quality of customers. The "stickyness" of these customers should increase as you know they love what you are selling.
-Groupon, Living Social, BuyWithMe....and everyone else-
Typically these sites drive larger volume of vouchers sold not necessarily to a specific demographic of customer. Think of them as giant canons that will send you mob of people. This is good for companies that have done a smaller deal, you have a system in place to process redemption, and more importantly an effective technique to drive repeat purchase behavior from your deal customers.
This is companies like the Tribune Company, Gannett, & the Suntimes. They bring a very unique value proposition. The volume of these sales will be lower, but the exposure is significant. You will benefit from high value traditional media placements
in the printed editions, and in some occasions radio placements at no additional cost.
Our stance is to run deals with niche companies and media companies first to fine tune your system, test price points, and develop a process to become a customer acquisition king then offer a deals up to Groupon or Living Social.
Once you know the metrics of your deal like the price point, the commission you want to pay, and the type of consumer are wanting to target we recommend Deal Umpire. They save you time by bringing your deal right to the deal sites and letting them bid on your deal.
MobManager is a software company that helps business manage their deal, track its success, and increase repeat customers. We have worked with more than 100 businesses providing them tools to manage daily deals.