Making Deals More Relevant | Street Fight

Making Deals More Relevant

Making Deals More Relevant

As we consider the future of daily deals and group buying, one theme that keeps coming up is the idea that increasingly sophisticated targeting (and thus relevance) will, over time, make the deals proposition better for both merchants and consumers. As with traditional advertising, the better targeted a deal is for a consumer’s preferences and geo-location, the better value the promotion is for the merchant who runs it. Getting the right audience to sign up for a specific deal is the key to achieving the repeat business and customer loyalty that make such deep one-time discounts worthwhile. Meanwhile, consumers receive deals and other promotions there is a good chance that they actually want.

“Further focus on relevance is the heart of the success of this business,” Group Commerce CEO Jonty Kelt said last week in a panel at the Digiday:Local conference in New York. “Whether it is very careful geographic targeting through 40 local sales people or the knowledge of what guys want (in Thrillist’s example), harnessing that asset and assuring you’re giving the right thing to the right people – that’s something there is going to be a lot of innovation around and lot of focus on.”

Demonstrating a quality audience to merchants is going to be key to getting them to run a deal in the future. In an article published earlier this week on Street Fight, Tippr COO Samy Aboel-Nil  said:  “Most business owners would much rather sell a smaller number of vouchers to a much higher quality of audience, than the reverse. Selling 200,000 vouchers to deal seekers is not nearly as valuable as selling 500 [vouchers] to people that are right up your alley and not making a decision because of price.”

And so it’s possible that the many local publishers making forays into the deals space may have a leg up on their pure play competitors, as their print and online products already have established demographics to target. Mike Wallace, the executive director of digital advertising at Boston.com, says it’s actually an advantage that more than “50% of [boston.com’s] audience did not know anything about social commerce or group buying platforms.” Rather than pitching to an audience that is by definition seeking a deal, local content providers attract a set of consumers with a particular profile in a specific location. As a result, discounts are a tool for bringing the right people into a location, rather than a destination for random deal-seekers. Given more specific audience profile information, as well, merchants can also better calibrate their offers to the presumed preferences of their audience.

“It’s about creating unique offers and experiences which are tailored to the local partners we’re working with,” Gilt City‘s lead curator Sarah Sheehan said at the conference. “So that in the end, the customer walking through the door is of the caliber to come back and spend full price.”

3 thoughts on “Making Deals More Relevant

  1. We offer a great tool that will help you check your geo-targeted ads.  A lot of our customers have used GeoSurf.com and found that geo-targeted ads that are in locations besides their own where not deployed properly and costing them lots of money . . . check out GeoSurf.com . . . you can get a free trial and try it for yourself.

  2. This article is spot-on!  The future of Daily Deals will be based on niche-sites.  People who sign up for Groupon might have done so to get a massage, sky-diving lessons, or a cup of coffee at a local shop.  This produces a large number of subscribers, but how many of those are qualified leads to become recurring buyers for merchant partners.

    Crowd Seats (http://www.crowdseats.com) is a niche daily deals site – only focusing on sports tickets.  When someone signs up for Crowd Seats, they are doing so with the clear intention of buying sports tickets.  That is our niche and this provides value to our merchant partners.  They’re not selling tickets to the bargain hunter/couponer, but rather to sports fans.  We’re basically pre-qualifying leads for these teams AND generating revenue at the same time.

    Niche is also important for Daily Deals in the fact that some niches work better with the Daily Deals model than others.  Again, let’s look at Crowd Seats for example.  There are inherent overages associated with a Sports Ticket Deal, i.e. parking, food/beverage, souvenirs, etc.  This creates significant additional revenue on top of the ticket revenue, making Daily Deals a perfect match for Sports Tickets.

  3. Great article. Amazes me that the larger players still haven’t been able to remotely crack this one.  There is a lot of innovation going on for merchants right now 
    (see http://streetfightmag.com/2011/07/19/case-study-using-instant-deals-for-scalability-and-control/) but it seems the b2c side of things is being left to the aggregators like yipit.com and our deal51.com. We started discussing personalization and relevance this week (see http://blog.deal51.com/2011/07/20/personal-relevance-in-deals-where-art-thou/) The deal providers themselves are too busy acquiring customers to remember that keeping an existing customer is always cheaper AND more profitable than getting a new one. Maybe they left business school too early?

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3 thoughts on “Making Deals More Relevant

  1. We offer a great tool that will help you check your geo-targeted ads.  A lot of our customers have used GeoSurf.com and found that geo-targeted ads that are in locations besides their own where not deployed properly and costing them lots of money . . . check out GeoSurf.com . . . you can get a free trial and try it for yourself.

  2. This article is spot-on!  The future of Daily Deals will be based on niche-sites.  People who sign up for Groupon might have done so to get a massage, sky-diving lessons, or a cup of coffee at a local shop.  This produces a large number of subscribers, but how many of those are qualified leads to become recurring buyers for merchant partners.

    Crowd Seats (http://www.crowdseats.com) is a niche daily deals site – only focusing on sports tickets.  When someone signs up for Crowd Seats, they are doing so with the clear intention of buying sports tickets.  That is our niche and this provides value to our merchant partners.  They’re not selling tickets to the bargain hunter/couponer, but rather to sports fans.  We’re basically pre-qualifying leads for these teams AND generating revenue at the same time.

    Niche is also important for Daily Deals in the fact that some niches work better with the Daily Deals model than others.  Again, let’s look at Crowd Seats for example.  There are inherent overages associated with a Sports Ticket Deal, i.e. parking, food/beverage, souvenirs, etc.  This creates significant additional revenue on top of the ticket revenue, making Daily Deals a perfect match for Sports Tickets.

  3. Great article. Amazes me that the larger players still haven’t been able to remotely crack this one.  There is a lot of innovation going on for merchants right now 
    (see http://streetfightmag.com/2011/07/19/case-study-using-instant-deals-for-scalability-and-control/) but it seems the b2c side of things is being left to the aggregators like yipit.com and our deal51.com. We started discussing personalization and relevance this week (see http://blog.deal51.com/2011/07/20/personal-relevance-in-deals-where-art-thou/) The deal providers themselves are too busy acquiring customers to remember that keeping an existing customer is always cheaper AND more profitable than getting a new one. Maybe they left business school too early?

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