Today’s New York Times held yet another article suggesting gloom and doom for the so-called “daily deal” coupon providers, such as Groupon, Living Social, and others. Click here to see the full story.
Implications: As I wrote back in April [see “Daily Deals go mainstream”], daily deals are not all bad. It’s just that you have to have a plan that will yield lots of first-time trial, but in a way that you can retain those customers over time, and gradually build a relationship that allows you to sell your product or service at a reasonable margin.
Don’t think of daily deals as a win-or-lose ad campaign. Ask whether you can convert those lowball consumers into consistent spenders over time. Without thinking ahead, you’re setting yourself up for a campaign that succeeds… at your expense.
Don’t just focus on the daily deal. What comes next?
Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.