Daily deals roll out like clockwork, and not just because they’re daily. At work I get emails directed at the person who came before me, and some of those are Amazon Daily Deals. Some are appealing, some are not relevant, all of them are extras. That’s because they aren’t deals for things that I need. This is inherently part of the current problem with daily deals, and it extends to more than just Amazon. Just last week Groupon fired its CEO Andrew Mason over fourth quarter earnings that didn’t meet expectations. These kinds of results are not an overnight thing, rather they’re a symptom of a much larger problem that’s produced a steady decline for some time now.
Reuters reported on a Raymond James survey that speaks to some of the problems daily deals companies have been ignoring
http://bit.ly/ZqjbzB
. The survey involved about 115 merchants that used Groupon services during the fall. 39 percent said they weren’t likely to run another Groupon promotion over the next couple of years, and the top reasons cited for why were high commission rate and low rate of repeat customers. 32 percent reported losing money on promotions and about 40% said Groupon was less effective for them than other types of marketing. Instead of making changes that impacted these core concerns, they glossed over them by appealing to merchants with new features and benefits. Ingrid Lunden wrote about one of these, which is Groupon Payments
http://tcrn.ch/Y7jlhr
. This Square/PayPal competitor feature was added to its Merchants app for Android handsets early this year. Although Androids are over 50% of all Smartphones in use, this was not the main problem Groupon needed to fix.
What daily deals sites are now struggling with is finding a new model. USA Today’s Hadley Malcolm points to what some of that might entail
http://usat.ly/Y3dDuU
. Offers that stand out is her first suggestion. Adding to that would be my own suggestion, which is to do that by making deals into longer range deals. How about a discount off of a series of visits or purchases, a coupon that’s good for an unlimited amount of visits in a week, or discounts on vacation experiences? My point being that if it’s encouraging repeat business people are more likely to be repeat customers to get their money’s worth. One of those visits just might turn them into long-term customers too. Her second suggestion is find other ways to make money. My suggestion on how that could be done would be delving into related services. For example, leveraging deals via social media or Constant Contact ™ for their merchant customers. No one vehicle is the surest route to a consumer after all. Her third suggestion is realizing who your customer is and this goes back to my first point. Daily deals are extras, they’re wants not needs. If they could tailor their offerings to people’s needs then they might see more business. This could be through using their own hits and misses to determine what certain people seek out the most. People might not be repeat customers of merchants but they are repeat customers of Groupon and that data could be utilized.
Although this series of events spells the demise of the current model of daily deals, it doesn’t mean they’re going extinct. Or that they have to. Instead, it’s an opportunity to revamp and revitalize their offerings, and their business, into a more profitable model. One that creates the type of results the survey shows are missing. I really hate the phrase ‘think outside of the box’ so I’m going to say that daily deals companies need to expand, strengthen and redefine what they are all about. Being open to this, listening to consumers and customers, and following through with what they learn are the best tools for the road ahead.
Marketing Lessons: Super Bowls Past and Present
Tags: real-time marketing, social media's Super Bowl ad space, Super Bowl ad lessons for this year, Super Bowl ad placement, Super Bowl ads, Super Bowl marketing lessons, Super Bowl marketing that works, Super Bowl power outage, takeaways from Super Bowl ads, utilizing social media
Super Bowl may be about ads, but for marketers there are underlying factors and opportunities there that last beyond game time. What works in the Super Bowl is a takeaway lesson for practices the rest of the year and beyond. Sometimes it’s static, as its relevancy maintains. Other times, it evolves. Most Super Bowls are a mixture of the two, capitalizing on past successes while bringing about new ones. This one was no different. The power outage created a unique situation and what happened there extended to the game’s ads as well. Most people in any spot of the game where they become disinterested turn to conversations, food and the Internet. In fact, most turn to the Internet. Specifically, social media. Whether they had TV ads or not, social media became the second ad arena for brands in this year’s game. Everyone was drawing connections to their brands in an attempt to claim a slice of the pie for themselves.
Forbes’ Jennifer Rooney notes the various examples in her article
http://onforb.es/YknR9F
. A few of them are mentioned here. During the power outage, Walgreens tweeted “We do carry candles. We also sell lights.” Oreo tweeted “Power out? No problem” along with an ad that ended with “You can still dunk in the dark. Tide tweeted “We can’t get your #blackout but we can get your stains out.” A clever capitalization on a popular hashtag to draw attention. All of these brands capitalized on the situation to draw an audience, others took it a step further and involved their competition. Audi tweeted “Sending some LED’s to the @mbusa Superdome right now,” drawing Mercedes-Benz into the mix. Others commented on other advertisers and drew connections between them and their brand. Right after Mio ran its spot, SodaStream tweeted “@makeitmio is delicious in SodaStream! Try it sometime.” This new trend of real-time marketing shined in this year’s Super Bowl and is one of the this year’s takeaway lessons.
Bloomberg Businessweek’s Steve McKee notes 10 others to keep in mind
http://buswk.co/YPDlEE
. My interpretations and applications of his points are below.
1) Put strategy first: Think about what you’re putting out there, its placement (before the game, during the game, etc.) and how it represents you. Good creativity is nothing without strategy.
2) Be relevant: For example, draw connections between your brand and what’s going on in the world. However, do it tastefully and not like that 2011 Groupon ad that tried to connect itself to Tibet.
3) Keep it simple: I’d say this year’s example of that is Dodge Ram’s ”So God Made a Farmer” combination, Paul Harvey and a series of still frames featuring pictures of farmers. A powerful but simple combination. It’s what some of the best ads are made of.
4) Show don’t tell: Actions speak louder than words, and that statement applies to ads too.
5) Invest in production values: ‘Go big or go home’ and ‘anything worth doing is worth doing right’ come to mind here. If you’re going to do it, you’ve got to do it well.
6) Provoke thought: It’s a unique angle and it stands out and engages customers. An example being the classic Apple “1984″ ad.
7) Strike an emotional chord: This year’s example of that was Budweiser’s Clydesdale ad. It tugged at heartstrings and won fans. These kinds of ads get remembered.
8) Don’t rush the sale: Continue it by expanding it to online, social media and additional spots. Tackling it from all angles is necessary. You can’t close all deals in 30 seconds. Or, even in a minute. Good things take time.
9) Reward engagement: Customers are always going to be asking “what’s in it for me if I support you?” Bring some closure to that question with contest rewards or other perks.
10) Take risks: Sometimes you succeed, sometimes you fail. You never know if you don’t try.
Some people might see this and think to next year. The smart ones will think about this year as well. These marketing lessons are not just for next year’s Super Bowl, they have applications throughout this year too. How you apply them to your brand, is up to you.