Re:LivingSocial: Employees' and Founders' Common Stock Now W...
by mead5432 on Thursday February 21, 2013 @12:21AM
(#5255581)
It's not that they are flawed, it's more about the businesses that provide the services aren't in a great position to understand how to leverage the deal.
These can bring in a short term influx of customers but unless the small business has some sense about how to convert those "daily deal" people, it's just blowing money.
In the end, daily deal sites are just another marketing channel. It helps to bring people in but if you can't convert, your ROI will ultimately be negative. This isn't something that small businesses can't understand, it is just not how they view these sites... they only see dozens and dozens of people coming in the door.
These can bring in a short term influx of customers but unless the small business has some sense about how to convert those "daily deal" people, it's just blowing money.
In the end, daily deal sites are just another marketing channel. It helps to bring people in but if you can't convert, your ROI will ultimately be negative. This isn't something that small businesses can't understand, it is just not how they view these sites... they only see dozens and dozens of people coming in the door.