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