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Daily Deal Alternatives For Businesses

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Since group couponing and daily deal sites have sprung up and continue to grow, many businesses find a hard time and struggle fitting a coupon deal into their pricing structure. There have been several well publicized bad experiences from companies where a Groupon or other daily deal has gone very wrong for the merchant. Mashable reported a story: In 2010[COLOR=#474747], "[/COLOR]researcher Utpal Dholakia [URL="http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1696327"]found[/URL] that about a third of Groupon promotions lost money for the companies that participated. There have also been numerous cases where a daily deal has actually driven a company out of business. Rachel Brown, a bakery owner, [URL="http://abcnews.go.com/blogs/business/2011/11/groupon-deal-burns-small-bakery-with-orders-for-102000-cupcakes/"]lost an entire yearís profit[/URL] as a result of a Groupon that sold too well."

Here are two strategies to help give businesses an alternative promotion instead of a group buying or daily deal site:

[B]Focus on Loyalty[/B]
One of the biggest concerns with daily deals is that many buyers watch carefully for good deals, but have little interest in paying full price for a service or a product. These buyers donít come back after they score that one great deal. But loyal customers are the most valuable for most businesses.

[B]Offer Targeted Deals[/B]
One of the biggest factors that can drag down the success of a daily deal is that many of the purchasers will be deal hunters who scour the web looking for coupons and other opportunities. This is not really the ideal demographic for your business. But that doesnít mean that you canít use a similar structure to reach out to the buyers who really are the best fit.

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