10 Tips for Local Merchants Looking to Create a Winning Daily Deal

Not all deals are created equal.  And as the number of deal sites competing for consumer attention continues to grow, the challenge of building a stand-out deal grows with it. So, here’s a list of 10 things to consider when putting together a blockbuster daily deal:

• Price point & discount: What’s your average transaction price?  Use this to determine your desirable price point.  For example, if your average transaction price is $10, consider offering a $7 for $15 price point.  This encourages the buyer to take a friend or splurge on something new (over the average purchase).
• Industry: There’s more wiggle room in price margins on services vs. products, but don’t forget your time is $$ in the service industry. If offering a deal on services, feature one or two of your most popular options and resist the pressure to do an all-inclusive package for 90% off (which your sales person will push for). These are big sellers, but don’t always end well for the merchant.
• Audience Appeal: Again, be sure to pick a popular product or service to feature.  Running an offer on something consumers have never heard of isn’t going to drive action.
• Brand Recognition: If you have an established brand, you have a little more flexibility.  If you are trying to build a brand, offer a popular product or service and be sure to focus efforts on making the customer experience one they’ll remember (and come back to pay full price).
• The Fine Print: Don’t get crazy here.  Remember to balance all your business needs with the consumer’s wants.  If you are a restaurant trying to get more people in the door on Mondays, restricting the offer to just this this day isn’t going to get the results you want.  Instead, consider offering a weekday deal vs. a 7 days a week promotion.
• Expiration: If your offer isn’t event-based, consider an extended expiration.  Give your new customers enough time to fit you into their schedule. Six months should be a minimum, but a year is preferable.
• Seasonal Promotion or Upcoming Events: Daily deals are a great way to amp up a seasonal promotion or upcoming event.  Integrate a deal into your existing promotions or event programs to increase your reach and drive better results.
• Quantity: Offer enough vouchers to drive substantial sales and encourage sharing. But,  you want only as many new customers as you can handle (and limiting the number of vouchers can help encourage the impulse purchase). Remember that unlimited voucher sales combined with a lack of preparation to handle the new business is a dangerous combination.
• Past Deal Experience: Have you run a deal before?  Be sure to incorporate what you learned from your previous deal, and research what deals have worked well for other merchants like you.
• Location: Location matters.  Consumers typically don’t drive 30 minutes for a $10 savings.  If you are in a high traffic area or have multiple locations, you have more options. If not, make sure your deal is worth the drive.

Putting together the right daily deal can send new customers your way and increase your brand awareness.  Still want more?  Here’s a case study of Tomlinson’s, a local Pet Store, winning with a daily deal.