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The Future of the Daily Deal Biz

Depending on with whom you speak, you’ll hear one of two things. Either someone will tell you that the sky is falling, or they’ll say that things are better than they’ve ever been. Those at the top of the industry have fallen into a groove of what works. Smaller sites have fallen by the wayside due to a lack of clout. One problem that plagues all remaining deal sites is the issue of long-term value for both the consumers and merchants. This isn’t a breaking story, it is the problem that has faced the industry from day one. It is the elephant in the room. It is the problem that no one seems to be thinking too much about.

Many industry leaders will tell you that it isn’t the job of a deal site to create lasting relationships between consumers and merchants. Therein lay the problem for the industry. Businesses who complain that discount customers rarely return, can blame most deal sites for doing little to prepare them how to maximize potential with new customers. If a consumer’s only tie to a business is the discount they had on the voucher the purchased, the relationship is weak and may not provide lasting value. Merchants need to elevate customer experiences to maximize long-term revenue and to increase the lifetime value of a customer. However, the most important thing for a merchant to understand is that they need to immediately create a bond with each customer that is more substantial than the discount used to lure a customer. This scenario will be different for each business, but figuring out this strategy will ensure successful deal endeavors.

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