Deal Site Consulting Services

Q: What is the fastest way to get pre-sold customers to you business with no up-front money?

A: Deal Site Marketing.


Deal Site Marketing Done Right

Unless you have been isolated from civilization at some remote monastery for the past few years, you have probably heard of or seen offers from some of the daily deal sites such as Groupon and LivingSocial. There are hundreds of others, but those 2 of the biggest players in this increasingly popular marketing arena.

You may have been asking yourself if deal site marketing is right for your business and will it be a profitable strategy to bring you dozens or hundreds of new customers. Many companies have tried this on their own without the help of a deal site consultant such as Your Marketing Crew and failed to produce the amount of profits they expected. Some companies have even lost money when promoting these offers. This is often due to a lack of understanding of the overall concept from a marketing standpoint. More importantly, most businesses neglect to consider several key factors which can have a significant impact on the overall profitability, not only in the near term but also long term.

A properly structured deal can produce a significant influx of presold customers as opposed to leads. This campaign can produce an immediate profit on the front end as well as numerous opportunities for upsells, cross-sells, resells, and e-mail list building for continuous follow up and other promotions. That is deal site marketing done right.

The History of Deal Sites

Until a few years ago, deal sites like Groupon and LivingSocial were relatively unheard of, but that is no longer the case. Platforms such as these have become a major player in the online marketing world. Groupon is the #1 daily deal site with over 85 million subscribers serving 500 markets in 44 countries. LivingSocial is right behind them with 42 million subscribers serving 478 markets in 25 countries. These sites have grown at astronomical rates and have spawned the rise of hundreds of other similar sites. Many of these other smaller sites focus on a specific geographic area or target niche as opposed to the more generalized widespread approach of the top 2.

How Deal Sites Work

A deal site will typically arrange a deal with the business owner to promote a discount offer for them. This deal is often structured in favor of the deal site due to the fact that they take a large percentage of the gross sale (usually 50%) without having to get involved in the fulfillment. The offer is then sent to the appropriate sector of the deal site’s e-mail list which can produce a significant increase in sales for the business owner in a short period of time.

Some businesses have underestimated the amount of new customers they could adequately serve because the proper limits were not placed when the deal was structured. This can produce a lot of unhappy customers because the business does not have the staff or resources to fulfill their end of the bargain. This can be easily avoided when the deal is structured properly.

Why Deal Site Campaigns Are Sometimes Not Profitable

As with any type of marketing campaign online or off-line, there are sometimes pitfalls to avoid and/or important factors that need to be carefully considered to ensure a very favorable ROI. Deal sites are certainly no exception in this area. The main reason that a company is not successful with a deal site marketing campaign is usually because their deal is configured as a one-time type of offer such that once the buyer redeems the coupon, they are often never heard from again.

Why Some Businesses Don’t Take Advantage of Deal Site Marketing

Some business owners don’t want to advertise on deal sites because they feel like they’re giving their products or services away too cheaply. What they fail to realize, is that the “discount” is merely the cost of acquiring that customer, not a lead, and certainly not a devaluation of their services. So the real profitability is determined by how that opportunity of serving the new customer is maximized.

How to Structure a Profitable Deal Site Marketing Campaign

Many small business owners seem to forget that deal site marketing is just another marketing strategy that has its own unique characteristics, weak points, and strong points like all other promotional strategies. There is nothing magic about it. They seem to forget that the underlying purpose is to drive more traffic to their website, store, or business locations.

Listen, you already know that there’s always a cost involved in acquiring new customers. This is just another way to get them in your door so you can build a lasting relationship with them. In return, they can spread the word to their friends and family about you.

The major advantage of deal site marketing is that these customers that visit your website or off-line business have already made a purchase as opposed to being just a lead. However, just like any other marketing campaign, the amount of success and profitability is often determined by what you do during the sale (coupon redemption) as well as after the sale.

Why Deal Site Marketing Works

Deal site marketing can be a very effective near-term strategy due to the large influx of new customers whose intention is to redeem the offer that is presented. However, I believe the real strength and profitability comes from having other components in place which can simultaneously offer upsells or cross-sells to other premium services or products. In order to ensure the highest profitability, this cannot be a one-time offer and therefore additional strategies must be implemented to encourage and promote return visits from the new customer.

Some Important Facts to Consider (Can You Afford to Ignore These?)

58% of businesses cited customer acquisition as the top reason for doing a deal site.
-MerchantCircle June 2011

77% of deal buyers were new customers, all spent more than the deal’s value, and an average of 20% of these new customers became repeat customers.
- Rice University Survey, June 2011

53% of daily deal buyers went on to become regular customers.
- ConsumerSearch.com, June 2011

48% of daily deal buyers for restaurants were new customers, 83% ended up recommending the restaurant to family or friends.
- Technomic Research

Why Do You Need a Deal Site Consultant?

A deal site consultant is a liaison between the business owner and the deal site and works on the business owner’s behalf to negotiate a lower commission rate for the deal site, which increases the payout to the business. We work on a pay-for-performance basis with no upfront money required. We are paid based on a percentage of the money you receive from the deal site. Since we are able to negotiate lower commission rates for the deal site, we are compensated out for our consulting time, while the business owner is able to realize greater profits than they would be able to without our expertise and guidance. It is a win-win-win situation for everyone.

Our extensive marketing background that spans over 30 years gives us the knowledge and expertise to strategically design and implement successful campaigns such as this. Deal site consulting is just one of the numerous strategies we can employ for your company to increase your brand awareness, customer loyalty, and profitability. Because it’s all about getting more customers.

Contact us today at 727-945-1175 to see how our Deal Site Consulting can bring more customers in your doors.

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