Articles

Like Christmas Morning Everyday…The Advent of Daily Deals

In USA on June 11, 2011 by S.Albright Tagged: , , , ,

No pun intended, Advent is the four weeks that lead up to Christmas. Even if you don’t celebrate this holiday, everyone has undoubtably experienced that “Christmas morning” feeling — butterflies, excitement, anticipation to rip through colorful paper as fast as you can to unwrap the surprise waiting for you.

Enter the world of Social Media 2.0. Receiving (too many) emails each day, we have the daunting task every morning of weeding through unwanted spam, business-related logistics (yawn), and finally… those special messages that could provide just the pick-me-up we crave: the daily deal.

One of the first things that I learned — and stuck with me — in an undergraduate marketing class was “there’s no such thing as a free lunch.” There is, however, such a thing as a deal. Even better? A daily deal. And in today’s economy, avid shoppers, restaurant-lovers or those just looking to try something new (hip hop classes anyone?) without bending their budget are making use of the ever-popular daily deal dominators Groupon and LivingSocial.

Deals are targeted to your specific geographic location, so you get discounts of up to 90% at local restaurants, bars, spas, fitness clubs and more. What’s even better is that most of these deals are more enjoyable with a friend (or more), so by inviting friends, family, or even co-workers to purchase a deal of interest, you could potentially get yours for free. As the websites have evolved since their launches in 2008 and 2009, respectively, features now include Instant Deals, LivingSocial Escapes and the very popular $1 Lunch Deals

Now that both Facebook and Google have joined in the digital discount craze, it’s still to be determined which company will ultimately come out on top. One thing that’s for sure: as smart phones and mobile app use continue to rise, daily deals won’t disappear anytime soon. So sign up (it’s free!), tell your friends and try some new places at a fraction of the normal price.

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4 Responses to “Like Christmas Morning Everyday…The Advent of Daily Deals”

  1. Nice analogy to start your post – finding a great deal in your deluge of email is indeed like finding that perfect gift. Be careful about assuming that all your readers can relate to the idea of a “christmas morning” – but we get the point … deals are a special treat and therefore welcomed in a way that most email isn’t.

    The examples you share are the ones that we would expect to see in a post like this, and digging beyond Groupon and LivingSocial to look at this trend more historically was a good choice because it gave us a sense that you had spent a bit more time researching your topic.

    Your conclusion pointing people towards daily deal websites was a bit confusing for this post, though … if your point was that daily deals is a big communications trend, I would have expected something that matched or mentioned that. The other thing that would have been interesting is to get your take on the recent controversy around the backlash to Groupon in particular for what some people consider their predatory business model which could be used to take advantage of certain small businesses.

    Apart from those points, a strong post to start your efforts on the blog. (4)

  2. I wonder if there are any statistics out there about how this is actually impacting businesses. Does it ultimately make them more profitable in the long run? I hope someone’s keeping track.

  3. That’s a really good point Amira, and one I probably should have addressed in my post.. though I admit I was thinking solely from the consumer POV. I think a whole post could be devoted to that aspect of the trend alone. I did come across this blog post: http://www.tnr.com/blog/the-study/87242/google-offers-groupon-livingsocial-profitability-study and the subsequent response to it from a restaurant owner’s personal experience with Groupon was interesting as well: http://posiescafe.com/wp/?p=316.

  4. Here’s another article I just read in The Wall Street Journal that addresses the same idea:

    http://online.wsj.com/article/SB10001424052702304906004576372573349258348.html?KEYWORDS=daily+deals+rescue

    I agree that that’s a whole other aspect of the idea of daily deals that’s more business-oriented, and requires a different set of research. I didn’t mean it should have been address in your blog post (sorry for the confusion!).

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