Can One Day Deal Sites Really Help Your Business?
As you will know the “One Day Deal” site s have flourished all over the Internet. It can be regarded as an easy way to generate new leads, make them part of your customer database and if you have good up-sell/cross sell skills you should be able to increase the customer lifetime value of these new leads…If they ever become loyal customers that is!
You see the main reason why these customers come to you is that you give a 50% discount. You effectively bribe them to use your product or service. What does that tell you about the category of leads they belong to? You’re right, they are the bargain hunters! Chances are they will trot along to your competitors when have got a deal going as well. How likely is it that you will turn them into your A type customers? Pretty slim I say…
The other concern you should have about these types of deals is that they train your clients to expect a bargain every time. It’s the same as having a retail store and constantly putting sales on. This customer psychology is very difficult to reverse once you have created it, and your business will be perceived as the place where you always get a bargain! Can you really expect to have a profitable business on that basis?
To add to the mix the “one day deal” company generally takes a 30% cut on the deal itself. In other words this is definitely a lead generation strategy ONLY. You will not make any money from this campaign. What I recommend is to test it once if you think that your business will benefit from it. But as always, make sure you test and measure. If you can generate 100 new leads and 50% of them become loyal customer who buy from you at full price as well, then it’s worth doing.
However I would stay away from making this a habit, because it dilutes your branding by showing what could be regarded as signs of desperation. If you are feeling short of ideas for growing your clientele, a good start would be to download my FREE report on this page: “The 21 breakthroughs of successful advertising”. Just enter you name and email address and access it instantly.