Daily Deal Best Practices
Is the honeymoon over for businesses latching onto the social shopping craze? As brands continue to learn the ABC’s of connecting with customers through group buying sites, research is starting to quantify the promotions. On OPEN Forum, EcoFin Media’s Mike Periu summarizes the results of a study of 324 companies who participated in deal promotions.
As we might expect from a new marketing vehicle, the results are mixed. For example, the study found that only about half of companies made money with their promotion. Yet, there were companies who did well, so here are a few of the best practices common among the profitable offers:
- Cap the maximum deal vouchers that can be redeemed by customers
- Stick to high face value offers (think $50 or more)
- Limit the redemption period to 3 months or less
Get more details from Mike’s article. Also check out the study from Rice University’s William S. Mackey and Verne F. Simons Distinguished Associate Professor of Management, Utpal M. Dholakia.
Have you tried promotions with a consumer site like LivingSocial or a business deal site like our partner company OfficeArrow yet? What was the experience like?