SM & Your Eyecare Business: Social Dealing; A New Trend – Lesson 24
Groupon, LivingSocial, PlumDistrict are all websites that you can partner with to create a special “deal-of-the-day” campaign, driving people into your business. A relatively new phenomenon, “deal-of-the-day” websites are powerful tools gaining momentum among consumers. These companies offer daily deals at highly discounted prices through the power of group buying.
Groupon is the most widely used “deal-of-the-day” website. The company offers one "Groupon" (or advertising campaign) per day in each of the markets it serves. A predetermined minimum number of people must sign up for the offer in order for it to become available to all; if the minimum is not met, the deal is dead and no one can use it, reducing the risk for the offerer and Groupon. Groupon makes money by receiving a portion of the deal. People purchase the deals on Groupon’s website and are issued a voucher which they present at the business to receive the discount. At the end of the deal, the “deal-of-the-day” company pays the partner company.
LivingSocial operates in much the same way and takes it one step further; after you have purchased from a LivingSocial promotion, you are emailed a link. If three people use your link to make a LivingSocial purchase then your deal is free.
PlumDistrict is similar, but claims it is more community based, using a “semi-volunteer” network of “viral moms” to get the word out about their deals. PlumDistrict offers a $10 per person credit for every “friend” you refer.
Most successful campaigns incorporate a significant discount or giveaway, and most “deal-of-the-day” websites encourage or even require you offer a significant discount in order to participate, as standard discounts do not create the most successful campaigns. Not everyone is accepted as there are only so many days per year, so if you plan on partnering with one of these sites, coming up with a highly enticing offer increases your chances of having your deal "accepted" and ultimately going live.
If you have used Groupon or any of the “deal-of-the-day” companies to boost sales, please share your experience. My practice will be running a campaign with PlumDistrict within the next month and I plan on covering that experience in a future blog, so stay tuned!
- Alan N. Glazier, OD, FAAO
Shady Grove Eye and Vision Care
Twitter Handle: @EyeInfo