As is the norm this time of year, there are predictions abound. We are no different. We will provide our own full set of predictions for the Daily Deal market in Canada next week. In the meantime Mukul Verma from Daily Deal Tips, a leading Aggregator out of Toronto, kindly offers our readers his predictions for the upcoming year. Please provide your own predictions in the comments section.
From Mukul Verma of Daily Deal Tips: Here are a few predictions we at Daily Deal Tips offer for 2012.
1. Expanding The Daily Deal Market
This year I moved to a smaller city (130,000 people), well not that small, however compared to Toronto (4.5 million people), it is a lot smaller. Many people here have not even heard of daily deals or if they have its only Groupon or WagJag. Groupon since it is in mainstream news and WagJag since they are marketing in mainstream media like newspapers etc. In 2012, the daily deal industry will widen its reach into the mainstream, just like other successful online ventures before it – Facebook and Craigslist. The deal market will expand its reach beyond the large metropolitan cities into smaller cities and towns and rural areas. This will broaden the scope for business vendors and the average users alike.
At this point, I, like many others, thought everyone knew about the daily deal market, and working in the daily deal market that was a fair assumption. But until recently, mostly only local business vendor who have been approached by the 100+ daily deal sites in Toronto looking to feature their business and the deal and price conscious individuals living in large metropolitan cities have heard and use daily deal sites. However 2012 holds promise for the daily deal market as they move into smaller markets and bring more localized deals closer to home.
2. Daily Deals Are Over
The deal of the day for one single day is over. Even Groupon now offers deals for several days which give people time to think about it. The deal market in 2012 will move towards sites offering multiple deals and for a longer period of time. Right now 2 to 3 days is the hotspot for main daily deal sites. I think in 2012 these deals will go longer. Also you will notice that many of the bigger deal sites are offering the same deal over and over again. These deal sites are also offering multiple deals at the same time, as many as 10 or 20 deals at a single time. In 2012 these two trends of longer deals and multiple deals will increase substantially.
3. Instant Deals
Instant deals will become a standard and many more daily deal sites will pick up on this trend that Groupon, Living Social, WagJag are already doing. You can learn more of this on Group Buying Canada’s post – Consumers Love Instant Deals.
How many times have you purchased a daily deal and never used it or forget about it and it expired. The discount may not be as great. However what if you were able to look-up and buy a deal now on your computer or smartphone and use that same deal an hour later, that would be a step in the right direction. These instant deals will be a big trend for 2012.
4. Business Owners Rule
This past year we have seen many business owners smarten up on the terms of the deals they make and offer. These vendors now negotiate better terms in regards to the percentage of commissions they get and how long their deals are promoted. In 2012 the power is going to shift into the business owners hands. In the saturated daily deal market, where there are many daily sites competing for the same business, the business vendors now have options and means to negotiate a more profitable deal overall.
I have spoke with a lot of business owners, some are very happy, and others who would not do it again. A few quick tips for business owners.
- Understand that a daily deal customer is looking for a deal. Give them a semi-deal on the second purchase. Don’t expect them to jump from $50 to $800 for the second sale.
- Understand that many deal consumers will not come back, know what your goal is ahead of time and how the relationship will continue after the initial sale for them to come back. Wishful thinking is not a goal, and is not good business.
- If you get frustrated or overwhelmed, getting people in and out faster, giving lousy service will hurt your business instead of helping it. I have seen it where the business owners are not happy with results of the daily deal they offer and give bad service, which can have a even greater negative impact in the long run. There are many customers that will ask -Will I go back? Your service is the reason they will come back, so treat your customers like gold. And don’t biet off more then you can chew. Sometimes too much business can be a bad thing too.
- Terms and conditions. Understand them ahead of time and make sure it makes sense for your business. I suggest that you make sure that you are not taking a loss on the first deal you make.
5. User Experience Enhancement
The deal market has become overcrowded with many daily deal sites. In 2012 I predict that the daily deal sites and daily deal aggregators will help the user experience become more organized and will foster greater appreciation from users.
In 2012 we will see a lot more location base searching from daily deal sites and aggregators. A great deal being too far away from ones work or home is not ideal.
Daily Deal Aggregators help you keep up with the many deals and locations, I predict that 2012 more users will use aggregator sites. Customers will go where they can see 200 deals at once. Deal aggregators are growing and can show you all the local deals available instead of just a single deal. I predict this user experience will motivate customers to buy more often from deal sites.
Email and mobile marketing has already shown success in the deal market as well, as many users don’t even go to the deal websites for days or months at a time, they just read the email or mobile app and go to the deal site only if they like a deal. In 2012 using email marketing and mobile apps will continue to be effective at reaching consumers.
6. Big Companies Will Enter The Market
In 2012 some big companies will open there own version of the daily deal site. This may be a strategic partnership like GaggleUp and Canadian Tire or it may be a product at a discounted price. Especially large e-commerce and big box stores will enter into this deal space. Now, as for the quality of the deals they offer we will have to wait and see. I am not too confident they will be the same as the daily deal sites.
A few of the more obvious predictions for 2012-
-the closing down or merging of many daily deal sites,
-expanding the services daily deal sites offer
-deal sites proving the business model is sustainable
It is impossible to tell what will happen in 2012 in this wild and crazy daily deal space we have all come to love. One thing is for sure, user experience will have to increase and the entrance of bigger players will help the industry become more main stream.
We would like to thank Mukul from Daily Deal Tips for providing their predictions for the upcoming year. If you would like to share your own predictions, please provide them in the comment section or if they are lengthy, then please contact us and we will consider publishing them on our site. Happy New Year once again.