6 months ago everyone was a fool for not being in daily deals, today you’re a fool for using them, or so says loads of commentary and research that have come out as Groupon reportedly nears its IPO.
While I’ve expressed my concerns on deal sites many times, I can’t help but wonder if the SMBs businesses buying into deals themselves are getting a free pass in the equation. Today I’m asking a simple question: After the deal gets signed and the customer influx starts up, are daily deal businesses doing anything to insure their own success or merely blaming their marketing partner for a bad deal?
When a customer self selects a business there’s an interest and a good experience may be enough for them to reselect, come back and build loyalty – motivation builds affinity. But when you offer 50% off, the bets are off, people are “discovering” but they’re not discovering new passions, they’re discovering deals and if they’re smart, hoping around in a 50% off world from experience to experience.
With few exceptions, the deal I see all share a common problem — there’s no basis for a relationship. Everything is a onetime purchases wrapped up in the justification that customers will “discover” something, fall in love with it and return time and time again. Businesses are buying into a long term customer model but not doing anything to get the customer back.
When a business complains about a daily deal we shouldn’t let them off on the excuse that the economics, sales people or backend payment sucked. Those are probably all true but more often than not, it wouldn’t make a bit of difference if they were good.
Instead we need to ask them where their program was to segment the non-tippers from the chatty customer raving about the wine. We need to ask why they’re giving 5 free ice creams at once instead of over 5 visits. Why is the climbing gym giving a one day lesson instead of a month long membership. Where’s the guest card to encourage a yelp review so others find the business? If there’s no hook, no loyalty building and no engagement it’s no wonder a hundred new customers aren’t all coming back.
The lesson from daily deals has been spelled out well: SMBs, stop believing in miracles and start creating your own. Whether it’s a coupon, a daily deal, a facebook page, tweets or any other hyped up marketing tactic it’s not about making people walk in the door, it’s about what you’re going to do when they step in to get them to come back.

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