Spring is here!! And you know what that means . . .Spring Cleaning! No one really likes doing it, but its one of those things that need to happen.
But hey, you always feel better once it is over anyway.
So you’ve probably already tackled your house . . . now what about your business? I say we use this motivation to finally spring ahead with Facebook Page promotions. Continue reading
Daily Deal Sites have been making headlines for almost two years now. However, in 2012 it may not be the case. Is 2012 the year of decline for daily deal sites?
Marcia Kaplan points the brutal commission cuts daily deal sites impose on merchants in a post at Practical Ecommerce stating that “The daily deal sites take 40 to 50 percent of the already discounted revenues, leaving merchants with roughly 25 to 30 percent of the retail price.”
Businesses are starting to get over the hype and they are looking at the bottoms lines. Here is what Kaplan thinks we’ll see going into 2012:
- More focus on return on investment by merchants. The novelty of daily deals has worn off and merchants are looking at the bottom line.
- More visibility into consumer behavior. Groupon is making it easier for merchants to get customer feedback by adding a feedback component to its Merchant Center. Groupon recently began surveying all customers about their Groupon experiences immediately after redemption. Merchants can now see the overall percentage of Groupon customers that would recommend their business and scroll through customer comments added in real time.
- A more competitive market as new, well-funded competitors enter the daily deal fray. When Google rolls out a nationwide daily deal offering, it will affect the two big players, Groupon and LivingSocial. Google has lots of cash and will not incur the customer acquisition costs — it has millions of customers already with its pay-per-click ad products — that saddle Groupon and LivingSocial. This may put pressure on Groupon and LivingSocial to increase revenue share for merchants.
Merchants can continue using the “big guys” and constantly fight for a following, but evidence is suggesting this is becoming a harder battle, and they aren’t gaining measurable ROI or insights to their customer base.
As a business owner, wouldn’t it be easier if you could have your own fans, the power of word of mouth, and control at your finger tips? Last week Ryan pointed out that a key to social media ROI comes from tying it to commerce. Welcome to the evolution of the daily deal, the power gets given back to the small business.
LivingSocial, a daily deal site, released their Member Must-Have’s Study for Q2’11. The study was broken up into four categories: beauty, fitness, food, and entertainment, and each of those had sub-categories. Can you guess what category racked up the most purchases?
That’s right: Food! (See table below for complete food category breakdown.) It would be interesting to see the number of deals offered each week by category to know exactly what LivingSocial users are seeing. While food was king at the category level, the top-selling sub-category was massages, with 154,085.
What can we learn from this, and how can it be applied at the region, city, and neighborhood level?
|Category||U.S. Vouchers Sold|
As LivingSocial Senior Vice President of Sales, Mandy Cole, said, “The results from this quarter’s U.S. trend study paint a really strong picture of the things people like to do in their free time.”
In short, Living Social has conducted some valuable market research that you can take advantage of. My challenge to you? Make a list of local businesses in the most popular sub-categories to add to your FanTools prospect list today!
For the entire article and daily deal numbers breakdown, visit the article posted in PR Newswire, FORE!- LivingSocial Identifies Americans’ Deal Obsessions.