Turn Daily Deals into Relevant Deals
Posted on November 2nd, 2011
The Seattle-area TechFlash blog recently posted an article by Lara Albert, senior director of global marketing for Globys, about the Daily Deal phenomenon and how it relates to mobile marketing. She takes the stance that better use of data would go a long way to giving the model a boost for long-term success. She applies her knowledge of global mobile operators and applies it to the future of the daily deal model. Here are a few excerpts:
“So what’s preventing this model from delivering on its promise of building long-term, loyal customers? It’s the use of data — or lack thereof. At the Mobile Future Forward conference in Seattle this year, Brian Mistele of Inrix nailed it on the head, “In order for it to be interesting, it has to know something about me and my preferences and be able to target me.” The majority of daily-deal offers are based on simple demographics, such as city, gender and email address. Is this really enough to target an offer that’s deemed valuable by the customer? And to determine which customers are most valuable to the small business?”
“Determining the right message for each customer is the first step. What is the optimal incentive for driving uptake? Is a “buy one, get one free” offer better than a “$20 off” discount? What offers are actually too rich and attract the wrong type of customer? How effective are certain types of messages? It’s important to determine customer sensitivity to offer messages because not all messages drive the same response. The next step is delivering that offer in the right context. What if you knew that an introductory trial offer targeted to those highly connected to social influencers who have completed a transaction in the past 72 hours drives 25 percent higher click thrus? Or that the probability of driving a sale increases by 40 percent when a ‘deal of the day’ is delivered to someone who lives near a particular retail location versus someone who is just visiting for the day?”
She closes with a focus on the new mobile market, arguing that mobile customers will opt in to those offers which are relevant to their lives, their location, and their current situation, in other words, relevant to the context. Her closing point hits the nail on the head, “By applying analytics to the rich universe of data at their fingertips, mobile operators can uncover the right time and place to deliver offers to the right customer — turning a daily deal into a relevant deal.”
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