Running a daily deal for your business can do some incredible things for you. It can get you in influx of new customers and cash (especially helpful during slow business periods), and is a very cost effect advertising solution. Businesses can offer upsells, gain a huge social media buzz, and keep your business looking busy… If you do the math ahead of time, get some good estimates, price the promotion properly, and launch it at the right time, you can find great success from running a daily deal.
But what about the negatives to running a daily deal?
Well, one of the primary complaints we often hear businesses say is that it will de-value their brand.
So will running a daily deal de-value your brand?
Yes and no.
Yes, because any time you offer a discount on your products and services, people equate the value of what they are getting with the amount they were actually charged. It’s just our nature as humans. Just because someone got a deal on a product or service doesn’t mean that they aren’t willing to pay full price in the future, however. And many times that businesses have ran daily deals or price reduction promotions, they did so without de-valuing their brand.
A critical component to discounting your products and services properly to help avoid de-valuing your brand is to give the impression of gratitude and not an incentive. It should be clearly communicated that clients come anyway but here is a discount in gratitude for their business; here is a discount because we want you to experience what we have to offer.
Yes, the “discount” incentive may be driving the customer’s visit, but put your energy into focusing on the experience and expressing your company as fun. When you do this, price becomes less involved in the customers minds. Sell the discount on the experience, not the quality of experience — then after the sale highlight the quality.
When the customer who is getting a discount from you shows up at your door, provide an incredible experience / product / service and go above and beyond their expectations. Blow them out of the water and turn them into a raving fan of your experience. Thank the customer for their purchase and congratulate them, send them off with a “we want to see you again” pamphlet, and follow up with the new customer.
One quick personal experience is from a deal site that I got a necklace for my wife for Christmas from. The necklace was 50% off. When it arrived there was a handwritten note saying ‘thank you for your business, we hope you enjoy the necklace, and happy holidays,’ signed by the owner of the business. Now, I looked at this note very hard to make sure this was not a stamped out note and it’s not. And that’s incredible! This company hand wrote me a note in what mus be the busiest time of year for them. I WILL return to this company in the future because it’s obvious they greatly appreciate my business and treat me very differently from most other businesses.
Running a daily deal could potentially de-value your brand, but on the other hand, I believe you are more likely to de-value your brand than running a promotion.
Marc D. Horne
www.DailyDealBuilder.com
I originally posted this article on Daily Deal Media – http://www.dailydealmedia.com/962-will-running-a-daily-deal-de-value-your-brand/
