Get the Real Deal on Daily

Deals

Arkansas Small Business and Technology Development

Center

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The Good

Daily deals are still purchased

Groupon: + 70 M subscribers

No difference in DDVs

20% repurchase rate

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The Good

Success!

Special Events

Restaurants

Adventures

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The Bad

DDVs keep 50%

20% redeem beyond value*

40% business dissatisfaction*

Cash flow problems

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* What Makes Groupon Promotions Profitable for

Businesses? Uptal Dholakia, Rice University

What’s wrong with daily deals?

What’s wrong with daily deals?

Saturated

What’s wrong with daily deals?

What’s wrong with daily deals?

“[All] The deals are for the same types

of products with hardly any variation.”

–Tom Adams, Chesapeake, VA

What’s wrong with daily deals?

“When the deals were more experiential

they kind of piqued interest a little more.

My favorite deals from the past have been

ones that really enabled me to try new

things.”

– Kait Smith

Right for My Business?

Unprepared for large influxes

Never have repeat sales

Lacking customer service

Don’t have a goal

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New Target Market

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When to use a daily deal

• Introduce new product

• Excess inventory

• Gain repeat sales

• Price conscious

• Instead of advertising

• Excess capacity

• Attract a new

demographic

• Generate buzz

• Additional sales

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Can I handle the traffic?

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Best Practices

1. Limit the deal

2. Get an add-on

purchase

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Best Practices

3. Have great customer

service

4. Make them come

back!

http://mobmanager.com/daily_deal_calculator

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Arkansas Small Business and Technology

Development Center

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@JennyRockus

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