1. They massively lower gain
There are a lot of daily deal sites out there that lots of customers have signed up to three or more. However, to make cut-through in their inbox, they ask that you offer an ENORMOUS discount. Even percentages such as 50% off makes their eyes glaze over; reductions of 75% to 90% are common. Even if you”only” offer 50% off, you also need to provide a further 50% to Groupon or the everyday deals company, providing you, at best, only 25%. Can you make a profit with 25% of their initial price?!
2. They impact your client service team
The daily deals websites will ask for as many components as you can supply. When the deal closes, you might have hundreds of clients simultaneously redeeming their coupons. Many be unfamiliar with your site, most will fail to read the directions and conditions and will call or email your customer support team for support.
3. They affect your operations
You might need to employ casual employees to take care of the spike in transport or place your already-busy team under more pressure to deliver today! Or not. I’m still awaiting the $100 value of Elle Macpherson lingerie I purchased for only $39 six months ago to be delivered.
4. They affect your regular customers
No-one likes to pay full price if it is unnecessary. So your regular clients feel annoyed they’ve paid full price while fresh, non-loyal clients get those things for a fraction. However, your regular clients will probably purchase as many as possible from you. And not pay the complete price. And won’t return to you for a while since they have stocked up.
5. They affect customer satisfaction levels
Everyone loves a deal yet most individuals are prepared to pay extra to get preferential support. Your new, unknown clients will expect to get their service or product instantly but fulfilment delays are nearly inevitable. Their satisfaction level are reduced by the time they get it so that you’ll have received almost no gain to irritate new clients who will not shop with you again.
6. They affect your brand
High-end brands like Tiffany do not do daily deals. However, budget manufacturers have almost nowhere to go –“You mean, I should have the ability to get this even less expensive?” Any offer I see today, the daily bargain price is the one I”believe” I should be paying. No matter if this is sending them gradually broke while the”actual” price makes me believe it is a rip-off.
But, there are 3 reasons you may use them:
1. Instantly grow your database
A daily deal might help you add new clients, some of whom can purchase from you again. You’ll have all their contact information and extra details like their clothes birthday or size to help target them .
2. Sell old inventory or trial offers
Shift ceased inventory; lower gains are better than stale stock sitting on the shelves, or why not trial new products. Maybe you could list them in a different nation’s daily deal website to benefit from the special occasions held at various times. For example, Father’s Day falls on June 17 at the United States and UK, but on September 2 in Australia and New Zealand.
3. Extra SEO
Long after you have run special offers, the search engines still show them in conjunction with your organization name. So you may try creating targeted offers to receive your business related to that sort of search term.