Daily Deals: The Results
In my last two posts, (Post One and Post Two), I introduced the concept of daily deal websites and outlined a particular case whereby Next Marketing recommended a daily deal for a small salon in Melbourne.
Here are the results.
- Every one of our objectives was not just met but also exceeded expectations.
- 158 deals were sold during the campaign period, almost doubling our original thoughts.
- Thanks to the high volume of the treatment sold, the salon was able to negotiate better pricing with the product supplier, which will support long-term profitability.
- In addition to this, staff became much more efficient in applying the treatment, taking the application time from four hours down to just three. This means that not only is each application cheaper, thanks to the new negotiations made possible, but Urchin Studio1 can accommodate more clients.
- The deal clients have been a good fit for the salon and are not just bargain hunters as first feared. One in five of the daily deal clients have since booked in for additional services at the full retail price.
- Finally, two out of three clients purchased additional products resulting in $3000 worth of sales, which instantly increased cash flow.
The Final Word
These results are undeniably fantastic. I maintain though that any business should tread carefully when dealing with these sorts of sale websites and approach them with caution and careful planning.
When testing out a daily deal marketing plan, it is important to consider the following:
- Which deal site is most appropriate?
- Does your deal encourage follow-on business?
- Does your deal have opportunity for add-on sales?
- If results exceed your expectations, will you be able to meet them?
- What is the profitability?
- Have you checked copy and images?
- Does the deal do good things for your business’ reputation?
- Do you see the deal generating repeat customers?
What are your Daily deal experiences?