During the holidays, consumers are opening their wallets simply because of the psychology behind gifts and the Christmas shopping season. According to Gallup, consumers in 2010 spent the most on last-minute gift shopping deals, spending upwards of $99 per day around December 19th.
In relation to daily deal sites, many businesses are ready to sign onto deal sites to drive traffic and increase sales during the holidays. According to Forrester Research, most consumers on daily deal sites are already customers of these businesses.
The plethora of daily deal sites has caused consumers to be frustrated with a cluttered inbox. Most of them are concerned only with businesses they already know. Therefore, businesses who are attempting to receive new customers and brand awareness as their intention for signing up with daily deal sites are in for a disappointment. Smaller merchants can hurt their businesses if they don’t limit or restrict the time period of their deal. Merchants should choose which consumers are allowed to opt-in, and focus on shorter deals.
We believe that it truly depends on the following, if it is worth it for a business to partake in deals sites:
- Size of company
- Industry of company
- Type of company – spa, restaurant, service, e-commerce, etc.
- Strategy – reason behind doing the sale
In addition, it is important to note that many consumers that are on deal sites, are focused on getting a deal, and could potentially be one-time clients. It can be difficult to make up the losses for conducting the deal unless the deal is structured in a way that is fair. Make sure to read between the lines, and understand fully what you are getting into.