Make Daily Deals Work for You

May 16, 2011

Couponing and discounting are hitting big in the retail scene. Find out why and how these promotions can really work for your store

All types of couponing and discounting are hitting big in the retail scene. There are now TV shows about extreme couponers and, according to Time magazine, in the past twelve months, some 23 million Americans bought daily deals…now that’s a lot of people! Retailers, independent coupon sites and credit cards companies alike are all getting in on the action, adding new innovations, and new ways to convince consumers they're getting a real deal. Supermarkets have been slow to the daily “limited” deals action, and here’s why jumping on this bandwagon with a few twists can benefit your store in more ways than one.
Adding daily deals to your website, or e-newsletters, will not only add you to the list of other big time companies benefiting from this trend, but will also cut out the middle man, i.e. Groupon and Living Social, who takes nearly half the cake. Daily deals are also sure to boost shopping occasions increasing impulse buys and overall sales.   

In a recent survey, as reported in Time, roughly half of people buying daily deals said their purchases were needs, and half said they were wants. Forget the wants (although these are good indicators of impulse buys) and lets talk about the needs. Offering goods that customers frequently purchase (and putting a limit on the quantity redeemable with the coupon) is sure to draw the attention of your frequent shoppers. It’s also about being smart about what’s in a daily deal.  
How do you reign in your frequent shoppers or even those who hold a frequent shopper card? Learn from the new partnership between SCVNGR and American Express in their LevelUP app deal site, which allows consumers to buy deals linked to their American Express cards. No more toting around paper coupons or printed out vouchers explaining the deal. Let customers link the deal and coupons on your website (click here to check out Ralphs) to their frequent shopper card and voila! Paperless redemption! No more hassle at the checkout for both shopper and clerk. 
The biggest challenge retailers have with the big time deal sites is creating a true customer. Most deal seekers are just that and most of the time do not become regular customers. By linking deals to shoppers' frequent shopper or club cards, you can be sure they will be back for more. Still skeptical, try rewarding frequent big spending shoppers with better deals and display incentives on in-store signage so “sometimes” shoppers will be incentivized to come back for more. 
Overall, the couponing and discount trend is here to stay, especially as prices continue to rise (but do keep in mind slim margins, as not to lose money on daily deals), and there are many options for retailers to get in on the action as well as new ways to innovate.