Groupon, Living Social and other Daily Deal programs, is there an alternative?

At this point we have all heard of them, Daily Deals. They have taken the marketing world by storm. Groupon, after just three years has been valued at upwards of $25 billion. Every day there is a new daily deal program that pops up. All of the TV and radio stations are getting in on the action. The question is, are they really good for your business? Being in the marketing business, specifically mobile marketing, my responsibility to my clients is to build customer retention and loyalty, increase foot traffic and use marketing dollars effectively and efficiently.

After talking with various retailers over the past few weeks about this latest fad, there was a lot of feedback.  Some comments good, most not favorable.  A number of them have said “why would I want to receive 25 cents on the dollar for a customer that most likely will only spend the face value of the offer” Is this smart marketing? Does this build brand loyalty?  Will these new customer ever return again?  Although we are firm believers that consumers are driven by their perception of the deal, are we creating a standard that has such a high cost? Can retailers survive it?

In today’s economy, with profits decreasing, costs increasing and tough competition, it is of vital importance for businesses to grow their base. Is a one time shot in the arm the way to go about it? Or is a dedicated marketing program designed to create new customers through targeted marketing more effective.  Is there a win/win for all parties?  For more information about alternative programs, please visit or call us at 877-743-0539.




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