— And gain more, tomorrow.
Have you ever experienced browsing for something online when suddenly you saw an ad saying that a specific product (Which you also like) is going on sale for 70% off — but only for a day! So you excitedly told this deal to your friends and went to the store to fall in line and buy it. After which you also bought something else, since you’ve already saved a lot from the prior purchase. This is usually called a “deal-of-the-day”, and is also called daily deal, flash sales, or even one-deal-a-day. This is a business technique in which businesses offer a single product for a huge discount for a period of 24 to 36 hours.
And you have to admit, having a product on sale for a significantly reduced price is very enticing, with the added effect of having it available on only one day creates a feeling of scarcity. Enticing indeed, and imagine announcing this deal 2 or 3 days prior. People will start word-of-mouth advertising for your business, and also attract groups of people who would want to take advantage of this deal. Whats great about this is that it’s highly likely that when people actually go to the store, they will usually buy something else aside from the product on sale, since, they’re already there, and they’ve already saved a lot from the previous purchase.
People will start word-of-mouth advertising for your business, and also attract groups of people who would want to take advantage of this deal.
Why Implementing Daily Deals is a Good Business Strategy
You would ask, why would a business implement a daily deal? Is it because they are trying to get rid of a slow moving product? Possible, but there’s actually more to it. The reason as to why a business owner would want to implement something as this is because of a few important reasons:
First of all, when a business implements a daily deal, the goal is not to sell everything (Although this would also be nice), but, to be able to acquire a huge amount of new customers in a small period of time. These new customers are likely to be converted into repeat customers and yes, the business will be selling their products at a lower price, but in the long run, the customers who were turned into repeat customers have a longer life-time value than those that aren’t. So the goal is to get people into your store and turn them into repeat customers in the future.
Second, is that customers who go to your store will most likely cross-purchase, or in other words, buy other products/services from your business. Even if the daily deal product is sold out, customers will cross buy other products since they’re already inside your store, even the ones that have bought the daily deal will most likely find themselves wanting to purchase something else because of having saved money from the prior purchase.
And lastly, is that if you suddenly announce an upcoming daily deal, giving say, 70% off for a specific product, it will in turn create viral marketing for your brand mainly through word-of-mouth and of course social media. What this means is that more people will know about your business, and you get free marketing!
Tips to Start Your own Daily Deal Program
Now you know that daily deals are an effective tactic to increase marketing and brand awareness for your business in a short amount of time. You might be wondering how to effectively create your own daily deal. Here are some tips from the PICA team in order to maximize the potential of this program.
1. Create a deal that is too difficult to resist
We urge business owners to think about offering a significant discount to make the daily deal simply irresistible to your possible customers. You of course want the daily deal to spread through word-of-mouth, so that it becomes viral enough to attract a lot of people. This would mean, that you will need to really give a huge discount that might decrease your profits; although it is also good to remember that the reason you want to create a daily deal is that you want to make your brand viral, and be able to attract a lot of people in a short span of time. If as a business owner, you get iffy thinking about the costs of giving huge discounts, a good idea is to think of the costs of giving out a huge discount as costs for marketing. In fact, the gains are completely justifiable, provided you do it right and have follow through.
“the reason you want to create a daily deal is that you want to make your brand viral, and be able to attract a lot of people in a short span of time”
2. Go above and beyond customer service
If the daily deal was able to truly attract a number of people, then the business should expect a sudden surge of new customers during the daily deal. Prudent business owners must inform their employees to be ready for a daily deal event. A daily deal is a very important day because it is when a lot of first time customers arrive and that means you can convert them into regulars.
What you want are not new customers who don’t come back, but loyal customers who will do business with you for a very long time. This is a chance for your business to put its right foot forward and go above and beyond customer service. Tell your staff to treat the new customers right and be able to offer their best service, something that your customers don’t expect. You will soon find out that your daily deal not only sold out your products, but you’ve also gained new long-term business.
3. Make it viral through multi-channel marketing
You won’t be able to make your daily deal viral, if in the first place people don’t know about your deal. There are a lot of ways to put the word out there, one of them is e-mail marketing. Send an e-mail blast to your existing customers regarding the upcoming daily deal, and you may also encourage them to invite other people by giving your customers incentives or rewards for this. Also, alongside your e-mail blasts would be a post through your social media channels. Facebook, and twitter comes to mind for this one, afterwards, a re-marketing campaign through Google Adwords and Facebook boosting would be ideal. These are just some ways to maximize awareness for the upcoming daily deal, once people find out about this, plus an irresistible deal will certainly make your daily deal viral.
4. Customer engagement is key!
It’s not enough that you create an amazing daily deal to attract new customers. After this, what’s next? Being able to attract a huge amount of people for the daily deals is one thing, but being able to retain them takes a certain amount of energy on your part as a business owner. It’s what you do afterwards that also counts, meaning, you should be able to collect your customers emails and contact details, in order to further engage them perhaps, a month after the event or 2 weeks afterwards. Send them a freebie, invite them to your business’s upcoming event, promote your upcoming loyalty programs. These will surely turn a daily deal hunter, into a repeat customer, as this is what you should truly aim for.
In conclusion
Implementing daily deals is one surefire way in order to make your business viral in a short span of time. It costs business’s a bit of money, and also time and effort to plan out a daily deal, nonetheless the rewards are far greater than the ones paid for it. You will get a surge of customers who might cross-purchase your other products, as well as a chance of converting them into loyal customers.
We know that there is a stark difference between a new customer, and a return customer. The latter of course, means long-term business, and thats what you want. Think of the daily deal as bait, you want them to come to your establishment, after which comes the real work, which is being able to convert them into your business’s new advocates.
