The “Art” of The Deals Program
At this point, we’re all familiar with the bigger Deal of the Day programs that have popped up in major (or semi- major) cities across the United States. Groupon, Living Social, Screaming Daily Deals and Amazon are just a few examples of the large online Daily Deals programs that consumers flock to in order to try new things (or visit the same places they’ve been!) at a huge discount.
The draw for the consumer is obvious – save 50% or more on fun activities, popular restaurants, high- end spa’s, etc, etc. They can try something new without the risk of having to justify the cost on an item with a higher price tag. Consumers get to save money, try something new, and (since most of the Deals companies only sign merchants with higher online reviews and ratings) they’re usually pleased with the experience. This results in the consumer getting a great discounted experience and the Deals Company winning a large cut of the merchant’s profit for promotional expenses, but… What about the merchant?
Are these programs actually beneficial to the company who offers the deal? This question has been a favorite of the media recently, and the majority rules that the merchant is the one who loses. While new customers walk in their doors, they often find themselves overwhelmed with thousands of vouchers to honor in a very short time and few returning customers – which is the merchant’s goal!
So, how would the program have to be tweaked in order to serve a benefit to all three parties?
Before I began my career in the interactive side of broadcast, I wouldn’t have known how to go about beginning to answer this question. I have since had the answer dropped in my lap: Hyper-localized deals that focus solely on the trading area of the merchant. What does this mean? It means the merchant should be able to answer their deal solely to a geographic area that offers the possibility of returning customers – in their backyard, even.
By limiting the geographical scope in which their deal is available, merchants are able to intentionally omit the spontaneous thrill seeker who will travel 40 miles to experience the business one- time and never return. RocketGrab.com, the deals programs run by NextMedia’s suburban radio stations across the US, offer merchants the same benefits their suburban radio stations do – the ability to reach the people in their backyard, without over-reaching to those out of their market.
Since the scope of the station is relatively limited, they’re are able to use on-air promotion to hyper localize said deals, benefitting the consumer, the deals program, and – let’s not forget –the merchant. Now that’s worthwhile for everyone.
