Article

How to Make Daily Deal Sites Work for your Business

The number of daily deal websites has continued to grow in 2011. This now means that businesses can not only target a specific location, but a particular age group, gender and even a personal interest.  Sounds great doesn't it? But there are some important things to remember when creating your deal campaign to make sure that it works for your small business.

Here are our top tips of how to make daily deal sites work for your small business:

  1. Do your homework: Different deal sites have different business models.  Some offer a 70/30 split with you others only 50/50.  Some may offer to pay credit card processing fees, others not. Know what you’re signing up for.
  2. Know when you’ll get paid: Like the commission rates, when you will paid can vary also.  Some offer instant voucher by voucher payment, some offer payment 30 days after the deal is published, others can be longer.  Make sure you know when you will be paid so you can make adjustments to your cashflow forecast and budgeting. 
  3. Know the date the deal will go live: Daily deals sites can reserve the right to post your deal at any time, but try to stay in close contact with them to save yourself from any surprises.
  4. Make sure everyone is briefed: It’s likely that your phones are going to go crazy so it’s important that you and your employees know every detail of the deal and are ready to take bookings. 
  5. Be prepared: Consider hiring additional staff to take bookings in the first three days.  Orders are likely to come thick and fast in the first few days and it’s important to have enough people to receive them.  If they are unfamiliar with a booking role or your company prepare a script for them. The customer service you provide in these first few days will influence whether they will be a returning client.
  6. Don't forget existing customers: Whilst you will be busy and excited about your new clients, remember to look after your existing clients.  They will notice if you don’t, which may lose you future business. 
  7. Think about the future: Have a plan how to make the new customers the deal will bring into repeat clients.  Consider creating some kind of loyalty program or incentive to the client to make the second booking or purchase.
  8. Measure your success: Track the number of new clients the deal generates, the amount of money they bring in and whether they return to you aft the deal.  Compare this to the amount spent on any extra staffing or any operational costs and the amount lost by discounting your product or service.  This way you can accurately determine the impact of your deal offer and if you should consider doing it again in the future.

It is important to remember when considering using a daily deal site to promote your business, that your focus must be on just that – promotion. Daily deals are like any other marketing or advertising tool: they will cost your business money.  Whether it's to fund an increase in staff or to cover the loss made on the deal voucher.  By completing your due diligence, forecasting your numbers and creating a tactical plan for the campaign your business will be ready.

About Small Business BC

When you find yourself asking "How do I...?" Give us a call. We'd be happy to help.