Deal of the day, one deal a day or bargain websites are increasingly becoming popular and a hot discussion amongst family and friends (well next to Facebook posts!) for dinners, outings, vacations, gadgets or even for a haircut. The reason for a huge success of these websites can be attributed primarily for the following reasons
- Value for Money- Who would not buy a genuine product or service at a steep discount? That s the underlying mantra for all these websites
- Effective Marketing- If you see these websites are a part of Google Adsense in most places. Moreover the word of mouth factor is an important game plan for most of the sites. In fact, referral freebies are generous in these websites luring thousands of new customers everyday.
- Tapping on the impulse of the target audience- Most of the deals are available in limited quantity and grips the consumer with “be quick or be dead” impulse, which is the most amazing aspect of the play.
- Perception- Back in the days folks were shy of using their credit cards online. Most of these websites have effectively surpassed that hygiene and have proved themselves by word of mouth. Moreover, safer pay options like Paypal have paved way for these websites.
- Sheer Volume Game for small local businesses- Most of the local deals that is out there are sheer volume play by smaller businesses like restaurants, pubs, adventure operators, spas etc. who don’t mind a huge spike in volume at a reduced rate, which benefits all the three parties- The business, The Website and the Buyer.
- Novel and economical Gift ideas especially around festive season or occasions
Now the lop side of things, most of these websites grip their customer, and why not, it’s great value. In fact, the generous freebies are for the loyalty and repeat business that they achieve. To add fuel to the fire, you get to use your credit card and maybe also the revolver effect of it! Most of the times a customer may end up buying stuff they may not in their normal courses of their lives for e.g. that off hand “mini vacation” or that multiple vouchers of sushi…etc.
To sum it up, these discount deals are a great concept once it’s not overdone by customers. It may help if a customer thinks for a moment before hitting the “Buy” button if they really want that deal or can be avoided without a pinch of difference on their lives.
Vijay Narayanan - Visit www.privateequitygcc.com for insightful PE related research on the GCC markets.
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