On November 3, 2011, I had the pleasure of joining a panel of industry experts to talk about the quickly maturing field of daily deals (a.k.a. group buying platforms) at Social Media Breakfast Greater Philly. Oxford Communications and our client, Visit Bucks County, teamed up once again to host the event at the Bucks County Visitor Center in Bensalem, PA.
The event, attended by over 50 early riser business professionals, also featured insights from a great group of fellow industry pundits from the Philadelphia market, including:
- Christopher Stemborowski (Oxford Communications)
- Tom Sauer (LivingSocial)
- John McInerney (Greater Philadelphia Cultural Alliance)
- Eve Gelman (Peddler’s Village)
In the end, attendees left with several key takeaways to help businesses on the journey to their daily deal dreams:
- Set Objectives: Those with experience in this field agree: Don’t count on making profits on the original purchases that result from group buying platforms. Think of these initiatives instead as a marketing investment that gives your brand a first date with consumers. With this understanding, it is important to set realistic objectives for your brand’s endeavor into group buying platforms. What is the expected average lifetime value of the customers you will get? How many purchases will it take to make up for profits lost during the initial deal.
- Know The Vendor: Before you sign-up to conduct a daily deal with the latest and greatest vendor, make sure you know the company well. Find out how long the company has been operating its daily deals, the demographics of its users and what kind of long-term support it provides to partners. Another key consideration is the deal’s impact on your brand. Before doing anything, sign up for the deals from vendors under consideration in order to get a sense of the brands yours will be presented with down the road. This exercise can also help your deal stick out from the clutter of other offers.
- Prepare Perfectly: One of the greatest dangers in engaging in a daily deal is a lack of preparation before the deal goes live. Prior to launching an initiative, make sure staff is properly trained to redeem deals and that it understands the business value of offering products or services at a discount. Next, find ways to make the experience your brand is providing its deal lovers an amazing one. This will ensure that, while the daily deal may be your brand’s first date, it won’t be the last. Finally, make sure you have a plan in place to retain first time customers through CRM programs, loyalty clubs or engaging social media presences.
If you’re interested in attending a future Social Media Breakfast Greater Philly, follow the event on Twitter or sign up for the newsletter.