In recent years, every day deals sites have sprung onto the scene, offering firms a brand new technique to sector their business. Daily offers sites benefit the consumer by giving them substantial savings, whilst brands benefit by spreading the word about their business.
However, critics believe that daily offers sites devalue the worth of a product or service. Critics also state that these enormous discounts are not realistically viable as they make little business sense.
On signing up to a day-to-day offers site, brands offer clients a big discount, more often than not as high as 75 per cent. Customers are often introduced to the brand for the very first time when they claim the deal.
Experts think that the impact of the every day deal will continually be 1 extreme or the other, dependent on a number of variables. These variables dictate that the outcome of a daily deal promotion will generally be one extreme or the other – extremely positive or very negative.
The second variable is the competition in the business’s present marketplace. When a company’s rivals are already giving out daily offers, this outcomes in a cost war where the profit margin is minimised.
Finally, the way in which the every day deal is structured is a key factor. It is essential that corporations decide on the proper time for a every day deal promotion, never offering a deal when already busy.
The first variable is the motive of the day-to-day deal – is the motive to create sales or to market the business? When a company purely intends to create sales, they hardly ever obtain success caused by the big discounts being provided.
Those who’ve had negative experiences with every day offers have noted that deals are regularly misused. Some critics state that a good deal of businesses plunge into everyday offers without a advertising strategy.
Expiry dates are also an valuable factor and more success tends to be accomplished when an expiry date is longer. One rapid injection of cash is far less useful than a continuous stream of business over a period of time.