Tuesday, December 6, 2011

Deals fatigue merits need-based daily deals

What an avant-garde tool daily deal sites could bring into use to transform a traditional style of brimming inboxes of the subscribers with deal of the day? Make them more need-based is a recommendation that can make daily deals unavoidable attractions for customers at this critical juncture when imbalances are whittling their shopping capacity down.

Media reports say deals fatigue is on the rise. Email receivers are showing their disliking by not using daily deals for weeks and months while some of them have abandoned reviewing an offer to the worst of people making emails ready for the subscribers.

Amazon, the ecommerce titan, has recently discontinued its email service for many of its subscribers. A spokesperson of the newcomer in the daily deal business said: “Amazon customers trust us to provide relevant communication about our products and services, and recently, some customers were automatically unsubscribed from AmazonLocal emails due to inactivity.”

It should be noted the online retailer had poured in 175 million dollars in the daily deal industry’s No. 2 LivingSocial to, as reports had it, give tough time to No. 1 Groupon.

According to a research firm Forrester, half of the respondents of its survey did not want to receive emails from the group buying sites. Reason? They were fed up with the merchant-centric daily deals that sweet-talked them into buying unwanted specials and deemed oblivious to what the customers actually need.

Daily deal sites need to mend their ways, suggest industry analysts. “They will have to morph significantly to achieve profitability,” Forrester’s analyst Sucharita Mulpuru told Wall Street Journal, particularly referring to Groupon that boasts of the heaviest email database of 115 million subscribers. The couponing site’s gross billing per subscriber is sliding gradually, as per the Yipit’s data.

Obviously, a caveat that emails won’t be the future driver of growth calls industry leaders to look for alternatives.

Idea: Retailers team up with daily deal companies to score bulk sale volume of goods and services without most of the time considering what customers might need. When hard times loom, buyers hanker for low-priced staples such as groceries and basic necessities they have to spend on in any case.

Therefore, daily deal companies should conduct research to discover small and medium merchants having basic product line and range as core businesses.

Discounts on such goods and services are most sought-after because of the prevalent financial downturn.

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