In Adelaide South Australia, where I live, Living Social has grabbed a huge slice slice of the daily discount email ‘market’.
This is where you can receive an offer from them for a company allowing you buy a product or service at a heavily discounted price.
In the States this market is dominated by Groupon and other like companies as well as Living Social.
Now for the recipient of these emails it is wonderful to use and try a service at a very reasonable fee. Supposedly at discounts which can be up to 30%-60% off depending on the company offering the service or product.
BUT and it is a big BUT…
businesses are still not using this marketing method wisely.
For instance; I bought into a local pasta meal deal a few weeks back.
When collected the owner complained about how much money they were losing on the 1000 deals they sold.
No attempt was made to get my details to keep selling to me. Just complaints came her mouth.
In another transaction, an Indian meal (we call them takeaways here not takeouts) seemed to get it right when they asked if I would like to join their email list.
“We send out weekly specials.” I was told.
“Why not?” I replied.
That was a month ago. No emails have been forthcoming.
The fact is these discount offers do play a part in a businesses’ marketing mix
only if they are a part of a larger marketing strategy.
Use this method of gaining new clients wisely – don’t be caught up that it is just cashflow.
Continually discounting ones goods and services is not a great business model.
Believe in Yourself