The short answer is I’m not sure… I read this news release by American Apparel talking about how successful Groupon was for them in the U.S. and how they want to expand the program to Europe. I am a bit confused why a national retailer would work with a daily deal website. Here are the top reasons to work with a daily deal website in my opinion: 1) Access to broader customer reach and larger audience than merchant can do on its own. 2) Acquire new customers – although likely that a large percentage of customers are repeat purchasers who just can’t pass up a good deal to a merchant they like. 3) Test and try a new type of advertising that is getting a lot of hype and press right now – leverage it for PR and other marketing purposes. 4) Performance-marketing – only pay (or get paid more specifically) for success/sales, not for impressions or clicks – good in theory although the high 50/50 rev-share is generating merchant push-back. Basically, I can’t think of any other compelling reasons to do it… Now comes the reasons why national merchants tend to avoid daily deal sites… 1) Branding inconsistency – highly branded national advertisers tend to value their brand and likely don’t like the association with coupon websites. 2) National retailers, especially the larger ones, already have massive consumer reach and distribution. Many have email databases of over 20 million consumers, although many are less responsive than the average email list for a deal-site – The largest retailers have the resources and consumer-reach to launch their own daily-deal site, which several are already doing. Even if they reach fewer people than they could working with a deal-site, they don’t need to share anything and drive consumer loyalty by speaking to their shoppers.
Archive for December 2010
Placecast, one of the leaders in location-based mobile marketing, recently announced a deal with a European mobile carrier to deliver location-based deals and offers to mobile subscribers. Check out the article here on TechCrunch. My take on this is that this is a good move to aggregate mobile consumers who have all pre-enrolled, or opted-in, to receive SMS messages from the wireless carrier. Or at least it’s easy to communicate with mobile customers en mass to entice them to opt-in. Having a ready-made audience with whom Placecast can market makes for a much more compelling program for advertisers, versus the often time-consuming efforts to enroll a specific merchant’s customers into the mobile messaging program. That’s a tough road, especially since more merchants are still trying to amass email databases and are at square-one for adding mobile numbers to their CRM program.
RevTrax recently announced a new product roll-out for the local market that enables QR-based coupon validation and processing/tracking for local deals both printed and mobile. It’s a continued effort by RevTrax to provide solutions to local marketing and media companies selling into local merchants, including print media companies and daily-deal websites. Check out the full release here…
I was recently introduced to a new blog, Online Marketing Degree, and a very interesting new post on the worldwide state of vending machines. Needless to say, some of the things that are provided via vending machines, especially internationally in countries like Japan, seem gross, unrealistic and WOW!?! Check out the post here to read about how the Japanese buy everything from fresh eggs to condoms from vending machines. In places like Australia, buying French Fries from vending machines is totally the norm too!