Group Deals and Bricks and Mortar Business
The number of one day deal sites in New Zealand grows every day. There are dozens of them and many of them now have a separate site for each region with deals for experiences, dining, accommodation, attractions and activities. This is great for bargain seekers, but doesn’t necessarily do a lot for bricks and mortar businesses.
There are scenarios where they have value, for example if a business has very large volumes of aged stock that they need to quit. It can also be useful for new businesses to make customers aware they exist. They also come at a price. The more powerful the site, the more they charge with fees being anything up to 40% of the sale of each item.
If you want to attract new customers to your bricks and mortar store, then obviously you want a coupon or something that needs to be taken to the store for redemption. Even if you are quitting aged stock, there may be advantages in getting people into your store in the hope that they will purchase other products while they are there. There are also benefits to both the customer and the retailer in not having the time, packaging and distribution costs in delivering product to the buyer. More on this in future blogs, looking at check in applications as opposed to group deals.
A study by Rice University found that 32% of businesses surveyed who used Groupon for promotions said they were unprofitable and 40% said they would not do it again. A major issue cited in the research was cannibalising existing business. Mashable quoted a statistic that less than 20% of people who purchased deals where they had to go to a store to redeem them, returned subsequently to buy full priced product.
So the question which I will come to in upcoming blogs is how to get people into your store at quiet times and more often. I believe the answer is in locations based services such as check ins and proximity based marketing. I welcome your experience or opinion on this.
No comments yet.
-
Archives
- August 2012 (1)
- July 2012 (2)
- June 2012 (2)
- May 2012 (4)
- April 2012 (4)
- March 2012 (2)
- February 2012 (4)
- January 2012 (2)
- December 2011 (1)
- November 2011 (1)
- October 2011 (1)
- September 2011 (9)
-
Categories
- AA Maps
- AA Traffic
- Agencies
- Android
- Auckland
- Australia
- Australia Maps
- awards
- Business Analytics
- Business Intelligence
- Business Tools
- car navigation
- Car Sales
- carbon footprint
- cartography
- channel partner
- Check Ins
- competition
- competitions
- Data Mining
- Delivery
- Distribution
- driving
- driving directions
- education
- Fleet Management
- foursquare
- Freight
- Furniture Delivery
- Gamification
- Garmin Asus
- Geocoding
- geosmart
- GIS
- gps
- Hyves
- ICT
- Indoor Navigation
- iphone
- lbs
- lbs games
- location based services
- location innovation awards
- Loyalty Card
- map tools
- Mapping Applications
- maps
- Marketing
- Meetups
- Mobile maps
- navman
- new zealand
- new zealand maps
- Oil Price
- petrol
- Print Advertising
- proximity based marketing
- Radio Advertising
- Real Estate
- real time traffic
- Retail
- Retail Profit
- Return On Delivery
- Reverse Geocoding
- ROI
- route optimisation
- Route2GO
- Rugby
- Rugby World Cup
- SaaS
- Sales
- sales territory
- satnav
- school
- Social Media
- social networking
- software
- Sport
- Sustainability
- systems integrator
- territory management
- tomtom
- Traffic
- Uncategorized
- university
- universityschool
- viral marketing
- Web Map
- web maps
-
RSS
Entries RSS
Comments RSS
Leave a Reply