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How to Increase Sales with Daily and Group Deal Offerings

 

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group dealsThis is a guest post by Henry Suarez, Product Manager at 3dcart. Henry is in charge of researching and documenting all 3dcart product offerings and partnerships. Henry has a strong background in the fields of webhosting and ecommerce support as well as an extensive history of customer service best practices.

Register for Henry's joint webinar with HubSpot, How to Gain Customers and Increase Sales by Running Daily and Group Deals!

In Sunday papers all across the nation, retail outlets will run circular ads announcing their week’s sales.  This model works beautifully for a brick and mortar outlet, where they not only increase their Sunday revenue, but also a steady influx for the rest of the week as well.  The tradition has been going on for so long that household bargain hunters have grown accustomed to reading the ads before reading the news!  Retail outlets have actually conditioned their shoppers to actively look for their ads every Sunday morning.

How can this basic concept be applied to an online store, where traffic is measured in hits and visits?  How can an online store condition their shoppers to actively seek their sales?  With regularly updated daily and group discount deals.

5 Reasons Why You Should Consider Offering Daily and Group Deals

1. Drive More Conversion With Urgency

    Bargain hunters find it difficult to pass up a good deal, but a deal that’s got a limited life expectancy can be down-right irresistible to them.  No one likes to think they’re missing a deal and that little bit of urgency can be all the motivation they need to make the purchase.  A promotion that is constantly changing and updating on a daily or even hourly scale will be a magnet to your shoppers.

    2. Increase Your Customer Base

      While adding a short life span on the promotion can really drive those sales, it can also help increase your customer base.  After all, if your regular customer isn’t interested in purchasing your daily deal item, perhaps they’ll share news of the deal with someone they know.  Now think about this…  What if you also persuaded your shoppers to share the deal with their friends in order to qualify for the offering? In this case, something like a group deal can further add that irresistible pull to the consumer by allowing them to not only partake in the offering, while also driving their acquaintances to your store.  Increase your customer base by setting rules for the promotion.

      3. Increase Your Social Media Exposure

        Constantly updated promotions encourage shoppers to share your information with others.  Today, the best way of doing this is through the various social media channels.  Adding a group deal exclusivity to the promotion can drive this aspect even further.  In today’s ecommerce world, sharing on Twitter is practically the same as sharing a clipping from the Sunday circular with your friend.

        4. Clean House (Warehouse, That Is.)

          The new model has arrived and you still have plenty of the old one.  Offer it up as a daily or group deal and make room for the new model.  Meanwhile you’re increasing your sales margin as quickly as possible before that older stock depreciates in value.

          5. Condition Your Customers

            Perhaps the most important reason for offering a daily or group deal – encouraging return visits.  Once your customers and the general public become accustomed to your constantly updated deal offerings, they’ll start making your site part of their habitual bargain hunting process.  Just as the Sunday circular ads have made household shoppers reach for that section of the paper first - before the news, comics, and crossword puzzle; your regularly updated deals will make your site one of the premiere places online shoppers will go to, just to see what’s on special for the day.

            Photo Credit: Grzegorz Łobiński

            Free Webinar: How to Increase Sales by Running Daily and Group Deals

            Free Webinar: How to Increase Sales by Running Daily and Group Deals

            Reach out to new customers and show them what you have to offer, at a price they can’t resist.

            Watch this webinar to learn how to leverage daily and group deals for your business.

            Posted by Michael Redbord on Tue, Jul 12, 2011 @ 06:00 PM

            COMMENTS

            I've been considering adding a Deals page to my site, this is very helpful, but since I don't want to be running both type of deals, would you recommend doing Daily Deals or a Group Deal? What are the pros and cons? Thnx.

            posted on Tuesday, July 12, 2011 at 8:35 PM by Mary Murray


            "How to increase sales with Daily and Group Deal Offerings" 
             
            ^If you're a merchant I have to make a plug for my company (read on, its useful). dealVITA will increase your revenue in daily deals for free (and give a free consultation about the risks and best practices for your type of business if you're new). We represent a lot of merchants, so we've got bulk bargaining power when it comes to the contract terms. Check out our site, sign up, give us a call...

            posted on Tuesday, July 12, 2011 at 9:13 PM by Richard


            Good essay, here's blog, feel the update slowly.

            posted on Wednesday, July 13, 2011 at 1:10 AM by LED street lights


            We haven't actually added a sales page as such. 
             
            But have found when promoting a great deal it has brought in more traffic and increased sales. 
             

            posted on Wednesday, July 13, 2011 at 5:30 AM by Essex Driving School


            I don't believe simply adding a Deal yo my website is going to bring more traffic, sales might be higher but it'll be within the existing traffic and customer base. The site won't magically get more visitors because you have a daily deal running on the website.

            posted on Wednesday, July 13, 2011 at 6:26 AM by Tom Richards


            You can definitely gain new traffic from running deals on your website. There are many places where you can submit your deals to attract visitors to your website. Also, by running Group Deals you're going viral and getting your existing visitors/customers to promote to friends via social networks.

            posted on Wednesday, July 13, 2011 at 9:29 AM by Jimmy


            Offering deals is such a great way to acquire new consumers! Daily deal sites seem to be all the hype right now... like there is a new one for daily sporting good deals called Qualify The Dealwww.qualifythedeal.com They seem very promising!

            posted on Wednesday, July 13, 2011 at 9:48 AM by Deanna


            A deals page on your website is a solid way of getting more traffic. I think we can all learn from you guys, thanks a ton!

            posted on Wednesday, July 13, 2011 at 12:57 PM by nicole


            I assist a small family business and I dont see many benefits from the Daily Deals. The business is just too small the consider doing this kind of specials, by reducing more our prices we could be putting the business at risk.  
             
            I met someone that is running a small business, a small dely only 2 people run the show and the impact that their offer had was incredible (which is the positive side), however when you look at the books, profits were very low, the amount of work and time required to put her orders together was not really worth it. 
             
            I spoke to her again a few months after, and i reached the conclusion that people were loyal to offer (deal), but not the business. I travelled from the other side of town to pick up my order, but i wouldnt normally travel that distance to pick up a product. 
             
            On the other hand, when there is a business that is a bit more established and it's looking at expanding or increasing its number of customers the cost of the offer could be factored in as part of the promotional budget. 
             
            Just some thoughts, i see it works some people, which is awesome! I hope one day, we will be in a position when I can offer the same. 
             
            The idea of a deals page on your website sounds awesome . . .i might think a bit more about that  
             
            Thank u!!

            posted on Wednesday, July 13, 2011 at 8:06 PM by Darien


            Darien,  
            By no means you should sell below cost when doing a deal. Think about it as a marketing effort to gain new customers, so at the end of the day even if your profit was low or none, you have an extra 50 customers that you can promote regular priced products to.  
             
            I would also suggest doing Group Deals instead of just daily deals, having the ability to call the deal off if a specific number of units is not sold. 

            posted on Thursday, July 14, 2011 at 12:40 PM by Jimmy


            Comments have been closed for this article.