Groupon has done The Gap, Buytopia had Sears, DealoftheDay has done ING Direct, Teambuy has American Apparel this week and now Buytopia announced a deal with Staples in Vancouver, Calgary and Edmonton going live next week. Buytopia deserves credit for landing Staples. This will certainly help them open the doors to other larger brands. Congrats to Marien and Anatoliy from Buytopia.
Large brands are starting to realize that deal sites are valuable as marketing services. Buytopia brought in 5000 customers to sears. If sears had to bring in 5000 customers on their own, it would have cost them far more in advertising and promotional dollars than they invested in the daily deal offer. Similarly, American Apparel did a deal with Teambuy for customer acquisition reasons. Team buy will sell over 15,000 vouchers for this deal and bring them and American Apparel a hell of a lot of marketing attention. There have been other larger brands such as hotels and restaurants but very few retail brands. Nevertheless, larger brands are starting to realize that deal sites are a valuable way of reaching customers and getting them in the store. Not many marketing mediums can do this. Thus the power of the daily deal campaign.
Our research indicates that over the next 12 months 4 major things will occur in the daily deal space in Canada.
First, many more mergers, acquisitions or closures will occur as certain sites will no longer be able to go at it alone.
Second, more and more sites will incorporate mobile deals into their mix,
Third, more efficient processes and technology will be in place to look after voucher redemption..it will become more seemless, look for credit card companies to participate, and
Fourth, more larger brands across the country will dip their toe into daily deal campaigns.
If the goal is customer acquisition, huge marketing awareness and a much higher percentage kept (large brands typically keep 65-80% of the deal), then the marketing teams at large brands and the agencies that represent them will start having serious conversations with key daily deal sites across the country. In fact, we know some top brands that will be launching deals with deal sites over the next few months. We are also already working with a handful of brands helping them with daily deal strategy, determining how best to leverage daily deal marketing and finally helping them select the most effective deal site to work with. We then communicate with the deal site ourselves and help negotiate the most effective deal for that brand. It is rather useful to have an unbiased daily deal ambassador/consultant work with both brands and deal sites to get a deal done. Not all deal sites are best or effective for a brand to work with. Sometimes it is not all about the quantity of voucher sales. There are other nuances at play; brand integrity, consumer targeting, geographical focus, value-add marketing, etc. We look forward to engaging with more brands going forward.
As daily deal campaigns become more main stream and as larger brands start to see reasonable results from their own daily deal campaigns, they will start incorporate Daily deal marketing into their marketing mix on a more consistent basis. Daily deal sites, for the most part, do their job in sending customers to the merchant’s location, now it is up to each merchant, be it a large brand or small, to implement customer retention measures to ensure these consumers come back as regular customers.
As the Christmas holiday season approaches, look for big brands to work with daily deal sites to drive customer traffic in store. During this time of the year, it is all about volume, not so much about margin.
picture is from interbrand