Over the past few years, daily offers sites have appeared on the scene, altering the way in which corporations advertise online. Daily deals sites benefit the consumer by giving them enormous savings, whilst brands benefit by spreading the word about their business.
Industry experts point out that there are numerous variables which decide how efficient a day-to-day deal promotion will be. Depending on these variables, the outcome of a everyday deal promotion will either be very positive or 100% negative.
The effectiveness of day-to-day deal promotions has been debated inside the marketing world. Supporters of daily offers sites state that it is a good way of elevating a brand’s exposure & producing profits.
Expiry dates are also an essential factor & more success tends to be achieved when an expiry date is longer. One speedy injection of money is far less productive than a constant stream of business over a period of time.
The 2nd variable is the competition in the firm’s current marketplace. When a company’s contenders are already giving out every day offers, this results in a price war where the profit margin is lowered.
However, critics believe that day-to-day deals sites devalue the worth of a product or service. These parties also believe that giving such massive discounts isn’t at all sustainable and makes no business sense.
Companies sign up to day-to-day deals internet sites where they offer huge discounts on their goods or services, at times up to 75 per cent. Customers are regularly introduced to the brand for the very first time when they claim the deal.
Finally, the way in which the day-to-day deal is structured is a key factor. Timing is exceptionally important & every day offers must never be supplied at a busy time of year.
Companies who have had a bad experience with everyday offers sites have reported that the deals are generally misused as too a number of offers are supplied. It has also been noted that numerous institutions offer everyday deals without having established a true advertising method.
The first variable is the motive of the daily deal – is the motive to generate sales or to marketplace the business? When the intention is purely to generate sales, the success rate is low due to the vast discount plus the brief duration of the deal.