Tuango gets back in the news in a big way this week with the closing of their recent Laser Hair Removal offer across Quebec. The first time Tuango ran such a deal was back in March and they produced over $1.1 million in sales off that one offer. Back then the top record in Canada for a Daily Deal offer. However, last week, Tuango beat this record. Their new offer generated about $1.5 million in sales from a national hair removal deal.
Yes, as impressive as this amount is, there are other points that I would like to highlight as impressive as well.
1. This is a Canadian record. A record for both an overall daily deal and local deal. No other daily deal in Canada has generated this amount of volume.
2. Keep in mind, however, that this offer was NOT for just one location; it was for 35 different local clinics across Quebec. Thus driving revenue to these small businesses all at the same time. Let’s think about this further. Tuango just brought in a minimum of $1.5 million worth of business to these 35 clinics all at the same time. (not including upgrades, and future purchases) None of these clinics paid anything for the exposure or for the advertising of the deal. Tuango brought exposure, revenue and potential future revenue to all these locations. That is something that no other form of advertising could have done as well as a Daily Deal promotion. Not TV, radio or magazine. It would have been way too expensive for these small merchants to promote themselves in this way using other forms of advertising. In exchange, Tuango receives a commission on sales for the promotion success. Hence the real power of the Daily Deal campaign.
3. Tuango used the Group Buying concept on Merchants. Tuango accumulated 35 separate merchants and convinced them to participate in a province wide promotion. This deal succeeded so well partly because Tuango made it possible for consumers to have many location choices at redeeming their offer. They took separate merchants who may or may not have been interested in running a separate offer and instead of running 35 separate deals in various location across Quebec, they grouped all merchants together and ran one major deal across the entire province. It worked for the merchant, it worked for the consumer and certainly worked for Tuango. This concept can be repeated for many other categories and shows a creative way of driving revenue for merchants within a Daily Deal concept.
4. eCommerce powerhouse. Tuango has shown yet again that they should be considered in any conversation or article about top eCommerce destinations in the country, and certainly in Montreal. Frankly Daily Deal sites get ignored when the conversation or even statistics turns to eCommerce. Deal providers are not seen as eCommerce sites. I understand and appreciate the difference between a true eCommerce business and a Deals commerce business. There is a difference. But here is where there is no difference, where they are the same and therefore deal revenues should be counted within eCommerce statistics: Although consumers are not receiving products directly from the Daily Deal provider, they are nonetheless buying through an online portal, transacting online. How they get their inventory or redeem their offer is a separate issue. If eCommerce revenue stats focus on sales generated by online commerce, then Daily Deal sites should absolutely be counting on in those statistics. Tuango and other deal providers produce eCommerce revenues where none exist before. Meaning, merchants who are not able to sell online are now actually selling online through Tuango and other deal providers, thus increasing the overall amount of eCommerce transactions in this country. So should InternetRetailer.com or others that track eCommerce revenue list deal providers on their lists of top eCommerce sites? You bet they should.
Congrats to Tuango once again and to the merchants who were promoted through this record breaking deal.