The Daily Deal Dilemma
Yesterday I shared a story from Mediapost that talked about Daily Deals.
It was my friend Joe Noorthoek who started the conversation with me back on February 29th and after I showed him yesterday’s story, he told me, “Customer loyalty is my concern.”
This is the Daily Deal Dilemma.
It’s not a new Dilemma.
It’s a Dilemma businesses have struggled with for decades.
Before the Groupon and Living Social type of websites, it was paper coupons and sales.
I recall several years ago asking a plumber I was working with if he wanted to be known as the cheapest plumber in town.
“Of course not”, he proclaimed.
But month after month that is the market he was going after by advertising in a direct mail piece with 40 other advertisers including 3 other plumbers.
His ad always promised the best price. “We accept and beat competitors coupons by 10%” was part of his ad copy.
His reason for doing this, was because his competition was doing it and he didn’t want to lose to them.
But what he was doing was playing their game, instead of his own. He was doing a form of the Stupid Offer I also mentioned recently right here.
Back to the web world of daily deals.
You will not build customer loyalty with these daily deals.
How can you? You are selling “price”. Even Walmart, known world wide as the low price leader doesn’t get 100% of the business they could if price was the only consideration.
But, I’m not ruling out the Daily Deals. You just have to use it as an introduction to your business.
Here’s a simple plan:
1st step: Be sure the offer covers your cost of providing the goods and services.
2nd step: Be sure the offer is limited to new customers and/or a smaller version of what you can do for them.
3rd step: Follow up with a customer service program that builds loyalty. For an oil change place, it could be your fourth oil change is free.
Or provide a service that is superior to your competitors, like a free full service car wash with an oil change. I’m talking about cleaning the inside of my windows and vacuuming out the old french fries from last year.
4th step: Follow through. Too many businesses focus on attracting new customers and neglect their current clients. in this web world we live in you have the ability to reach out, thank and reward your customers easier than ever before, if you make the consistent effort.
One last thought for now:
You will not be able to convert all of your first time customers into loyal customers no matter what marketing vehicle you use.
If you are willing to put in the effort and follow the steps I mentioned, you can use Daily Deals as a quick introduction to your business to a lot of people which is a good beginning.