Daily deal sites like Groupon or LivingSocial are great to get the word out about your products to a very large pool of customers. This was my advice to restaurant owners at great restaurants, which have a strong following from their own ethnic communities, but may not be known by the general public, except by chance. e.g. Mayura in Culver City and Cafe Colombia in Burbank.
These sites generate the online rush to buy goods similar to the rush seen in stores on Black Fridays. People see that a deal, generally 50-70% of retail price, is on for only 24 hours, and are motivated to purchase the goods, in case they lose out. The deal will only get activated if enough people buy the daily deal.
If you are trying to sell your products on Groupon or LivingSocial, you can be in control of the minimum number of offers that you want to sell the deal for. The site gets a percentage of the sales that you make. Its a win-win since you are trying to get new customers, and this is a dramatic way to do it, without spending thousands of dollars.
Here is an example of a success story from the Groupon website: “In January, a $25 Groupon for $50 worth of services at Andre Chreky salon in Washington, D.C., met its minimum 100 sales at 7:33 a.m., and topped out at 2,222 by midnight.” And Living Social reports about the success story of a dance academy which has a waiting list of students after it created a daily deal.
The demographics of the subscribers to these websites is 60% female, 44% college graduates, 46% between the ages of 35-49 and a pretty even distribution across income levels.
Nowadays businesses have to market to their customers in so many different ways. These sites can be used to give an extra edge.
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