Flash sales became popular as an offshoot of the deals industry. Consumers proved they have a healthy appetite for bargains but they’ve also begun to tire of the constant hype. At the same time, traditional retailers are encroaching on the flash-site territory. These trends are leading operators to change their strategy and their marketing tactics.
Tag: daily deals
The daily deal industry continues to evolve. While consumers are still excited about getting deep discounts on the products and services they love, marketers must weigh which deals make sense for them. The same holds true for publishers and platform providers. Groupon is enhancing its affiliate marketing strategy to attract more publishers but industry experts are cautioning that media companies and marketers should avoid certain deals to protect profits and reputations.
Daily deal sites made a big splash on the national scene a few years ago. By merging the social networking aspect with deep discounts, marketers believed they could connect with more customers and generate more revenue, though they needed the help of a deal site company to pull off these promotions. Utpal Dholakia, Rice University, has periodically issued research results on this topic and his latest study shows that restaurants will be proceeding carefully in the daily deal industry.
With revenues in the daily deal industry forecast to reach $3.6 billion in 2012, more marketers may be asking themselves whether they should explore this format. For small businesses, a successful deal could bring a significant number of new customers through the door. New research suggests that a positive experience with daily deals could also lead small business marketers to roll out a variety of related types of promotions.
Marketers always want to know the lifetime value of customers they acquire. These calculations vary according to which channel a marketer uses to attract customers. With so many new channels available in the digital world as of late, one research firm, RJMetrics, has provided its take on what the customer value numbers look like.
Numerous studies have been published this year on the daily deal format to determine whether it’s really working out for marketers. The restaurant industry has been very willing to use daily deals to try to improve customer traffic. This sector has been hit hard by the economic slowdown. And the latest research from Cornell’s Center for Hospitality Research suggests that, despite some bad press, daily deals can work for restaurants.
It appears that analysts are keenly focused on the daily deal phenomenon. Last week, I blogged about an Accenture report that projected a rosy future for daily deals. Earlier this month, Groupon had a successful IPO. But some analysts see a troubled future ahead for this sector.
Marketers remain intensely focused on daily deals. And, as I noted last week, experts predict this marketing format could be valued at over $4 billion by 2015. With all of this attention on the industry, researchers are exploring who makes the best targets for these programs and how operators might expand their reach.
Is the daily deal phenomenon here to stay or is the market for this promotional tool about to experience some big changes? Earlier this year, about 530 companies were competing in the space. That number has already dropped to 170. While the number of companies facilitating deals might be shrinking, new research indicates the industry has some growing to do.