Articles about Daily Deals Page 4

The Dangers of The Daily Deal Business

Friday, August 23, 2013

The daily deal business model provides lots of benefits for business startups. Entering coupon industry is relatively easy and inexpensive. However, there are many dangers and risks awaiting entrepreneurs on their way to building successful and profitable group buying or deal of the day business. Being aware of a problem is the first step in preventing it from occurring. So, let’s explore the key pitfalls to avoid when running a daily deal website.

1. Small business instability.

Daily deal promotions is a beneficial advertising option for merchants because it does not require an upfront payment from them. This also makes deal promotions available to startups and companies with a limited budget. Unfortunately, this category of businesses have a high failure rate. Besides, new companies can have some stock shortages or other issues caused by the lack of resources and experience. Daily deal companies should be careful when choosing merchants to partner with and should make at least brief analysis of their financial stability and ability to provide quality service to clients.

Coupons & Happiness [Infographic]

Thursday, August 1, 2013

According to the recent study “Your Brain on Coupons: Neurophysiology of Couponing” conducted by Professor of Neuroeconomics Dr. Paul J. Zak at Claremont Graduate University, coupons can help make shoppers happy and relaxed. This is the first known scientific research of the neurologic effects of couponing performed in a laboratory setting. Dr. Zak’s team aimed to explore what happens to the human body when people receive a discount offer. The findings show that the levels of oxytocin, a hormone of love and happiness, rise when shoppers receive a coupon. In fact, after getting a saving offer, oxytocin increases more than from cuddling or receiving a gift. Coupons were also associated with the reduction in several different measures of stress. So, the results of the study suggest that receiving coupons decreases anxiety and can directly impact happiness of people.

What Kinds of Businesses Benefit From Coupons and Daily Deals?

Wednesday, July 24, 2013

Coupons & Daily Deals - What Kinds of Businesses Benefit From Them

Group buying and daily deal sites have been experiencing quite volatile times during last months. The struggles of Groupon and LivingSocial, along with controversial evaluations regarding efficiency of daily deals for merchants, have undermined the belief of some entrepreneurs in the deal-of-the-day concept. Nonetheless, fueled by the consumers’ love for a bargain and supported by the diverse benefits of the model for businesses the daily deal space stoutly resist the market collisions. Business owners are always looking for efficient and cost-effective methods of attracting new customers. Coupons and deals is a great way to accomplish this goal. Food, drinks, beauty, health, baby products and other popular deal categories continue to provide a solid base for further development of the deal industry.

"If you build a great experience, customers tell each other about that. Word of mouth is very powerful." ~Jeff Bezos

Friday, July 19, 2013

There were many publications in social media about the questionable efficiency of daily deals during recent times. Some merchants started to refrain from using daily deals websites. The merchants claim that they do not receive repeat customers after running deal promotions and it happens that they get negative online reviews from their deal users. However, many deal of the day and group buying businesses continue their operations without paying much attention to those talks.

Great customer experience is one of the clues to success in any business, including eCommerce and daily deals. People love to share experience with each other, whether it was positive or negative. So word of mouth might become either a driving engine or a heavy brake for your business. Take care of your customers and drive the power of word of mouth to work for your benefit!