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Speed Dial: 60-Second Marketing Insight Newsletter
What are Groupon Coupons, Living Social Deals, and Home Runs?
A five-course Moroccan dinner
for two, an hour-long Swedish massage & European facial, two rounds of Cosmic Bowling (plus shoes), and a
weekend cooking class just for kids.
... all just minutes away, all at 50-80% off, and all with no catch, fine
print, or hassle.
Welcome to the world of Groupon coupons and Living Social deals, where you & your neighbors can snatch
up spectacular savings on pole-dancing classes, helicopter lessons, car detailing, museum memberships, and
more...
...if you make your purchase within 24 hours of
receiving your daily deal email. Once you've bought in, you can use your daily deal immediately or tuck it away
for several months.
Ever since my friend Kate Webster tipped me in to
Groupon coupons and Living Social
deals, I've been watching the consumer phenomenon
of daily deal sites spread rapidly through metropolitan markets here in the US. Deal-of-the-day sites
like My Daily Thread, Home Run, Town Hog, & Adility are growing here, just as Vente-Privee (France, Spain, the UK, Germany, & Italy) and
Mydala (India) are expanding in other parts of the
world.
The idea is simple: when local businesses offer exceptional
savings through daily deal sites, they can leapfrog the competition & gain instant new traffic. Since the
daily deal can only be purchased "now" (within a 24-hour time frame) but used "later" (typically within six
months), a local business can manage its risk & any logistical issues quite effectively.
And it's working.
In two short years, Groupon has become profitable- - its 2.3
million subscribers have purchased just under 2 million Groupon coupons. Living Social deals have secured
$10 million in venture capital. Home Run has raised $2 million in funding.*
What's Behind the Success of Groupon Coupons, Living Social Deals & Other Daily Deal Sites?
While this new consumer trend is fueled by the Internet (it's
one of the rather rare viral marketing examples that's
actually commercially viable), the marketing psychology behind it is timeless:
1) We want something for nothing. More for less.To have our cake and eat it, too.
2) We're afraid of missing out. Fear of loss is a powerful motivator that prompts action- - we want to get in on an opportunity before it's gone... forever.
3) We want to beat boredom. These daily deal
sites give us a safe & easy way to add new experiences and variety to our lives.
4) We want the big wins. Daily deal sites offer
significant savings- - 50, 60, 70, and even 90% off, not a miserly 15% discount.
5) We're curious. Because so many different
types of retailers participate in these daily deal sites, you never know whether today's Groupon coupons or
Living Social deals will be on gourmet frozen yogurt or a two-week basketball camp. This element of
"treasure-seeking" that keeps us engaged.
The smart marketers behind Groupon coupons and Living Social
deals are certainly leveraging these insights into consumer psychology with great success- - and whether you're
leading a small business, building a brand, or serving as a volunteer, you can make them work for you as
well.
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