Daily Deal Builder

Members Training Webinar

November 30th, 2012

Your presenters,

Marc Horne & Tyler Horne

We are going over

• Daily Dealing Abroad

• Raising All Conversion Rates

• Strategic Partnerships

Daily Dealing Abroad

The Primary differences to take into account

when running a deal site outside the USA:

Commission Based Workforces – The rest of the world does not tip in the same

way that the USA tips. Daily deals often depend on servers to generate wages from their

tips.

Turnover Rate – Folks often stay longer in restaurants in Paris, Amsterdam, & other parts

of world. Dinner often times IS the nights activity.

Local laws & Regulations – Due proper due diligence on local laws relating to

coupons, expiration dates, eCommerce, etc.

Language Barriers – Do you want to market to tourists?

Upsells & Strategic partnerships – Trip Advisor, tourism companies? Who

complements what you are doing?

Online sales numbers are crushing all past

results and NOW is the time to lock in

deals, put up offers, drive traffic, and grow.

Cyber Monday saw a 30% growth in online sales over Cyber

Monday in 2011.

More than 18 percent of consumers used a mobile device to

visit a retailer’s site, an increase of more than 70 percent

over 2011.

IBM also found that online sales on Thanksgiving grew by

17.4 percent followed by Black Friday where sales

increased 20.7 percent over last year.

Get More Sales

• Carefully craft your headlines and offer copy. Use

high quality and engaging images, & video…

• Adjust price points.

• Repeat campaigns: Set yourself up to run multiple

deals with a merchant you lock in. Study previous

deal and maximize effectiveness.

• Model what works , but stand apart.

Raising Merchant Conversion Rates

• Be different. Be innovative. Lock in Deals. It doesn’t have be a typical

daily deal scenario (any type of deal, i.e. photography, videography,

email management, website creation, marketing help, etc ).

• Separate yourself from your competition and the major players.

Businesses are much more aware of how Groupon works than they used

to be. They are also aware of the risks associated with running a deal,

most notably the possibility to lose money.

• Use this component to your advantage. You are not Groupon. You are

not Living Social. Don’t try to be. Use your smaller than 100 million

person user base to your advantage. Use your flexibility to your

advantage. Tweak your “rates,” make it work for the business.

• Put primary energy into making the merchants happy.

Always work to use concrete statistics

and data to push your case.

• 80% who purchase daily deals are new customers (Rice)

• 40% average upsell or "lift" (Forbes)

• 65% of new customers return to the business (Lightspeed

Research)

• 77% of businesses will offer more than 1 daily deal (Merchant

Circle)

• More than 20% never gets redeemed (Rice)

Your Pamphlet

Primary Benefits enjoyed by

Merchants who use Daily Deals

• 1. Influx of new Customers

• 2. Increased Brand Awareness

• 3. Ability to break into newer markets

• 4. Quick Cash Inflows

• 5. Ability to increase revenues in slower periods

Primary Benefits enjoyed by

Merchants who use Daily Deals

• 6. Upsell Opportunities

• 7. Cheap advertising solution/ Low customer acquisition

costs

• 8. Keeps business looking busy

• 9. Social media buzz

• 10. Word of Mouth advertising from Deal Users

Capitalize on the benefits and

work to remove & overcome

the complaints…

Primary complaints from

Merchants who use Daily Deals

• 1. Low Customer Loyalty

• 2. Deal-Hungry Customers

• 3. Brand Devaluation

• 4. Low Margins/Large Commission Structure

• 5. Negative Online Reviews

Primary complaints from

Merchants who use Daily Deals

• 6. Pushy Daily Deal Site Salespeople

• 7. Unmanageable Influx of Customers

• 8. Inability to capture customer information

• 9. Cannibalization of existing customer base

• 10. Difficulty in tracking loyalty of deal-users

Help businesses overcome low

customer loyalty…

• Thank the customer for their purchase and congratulate them.

• They were excited when they bought the deal and oftentimes, folks will get

buyer’s remorse; so it’s important to keep them excited and thankful that

they ordered. When the new customer leaves the business, ask to see

them again soon and give them incentives to come back. Send them off

with a “we want to see you again” pamphlet.

Help businesses overcome low

customer loyalty…

• Gather feedback and testimonials as early as possible.

• When someone publically states that they are pleased with a business,

they are much more likely to internalize this feeling and stand behind the

business at all costs. Encourage and most importantly incentivize new

customers to provide a review so that you can continually better your

business.

Help businesses overcome low

customer loyalty…

• Provide an excellent product and service.

• This is the most important factor. The number one reason why people

become a repeat customer is because their expectations were exceeded

and they were treated with respect, courtesy, and honesty.

• Serving someone who only paid 50% of your normal cost oftentimes can

feel like you are getting ripped off and make you subconsciously not

deliver as well as you normally would. The exact opposite needs to

happen. Blow expectations out of the water. Go out of the way to make

that new customer feel special. Ensure service is delivered at peak

performance.

Help businesses overcome low

customer loyalty…

• Offer upsells and one-time offers that make sense.

• I always like to discuss GoDaddy, the domain registrar, when speaking

about upsells. You visit GoDaddy to buy a domain name and expect to

pay around $10. Before all is said and done, GoDaddy has offered you

over $1200 of additional services to add to your order. The important

component is that each of the upsells that they offer actually makes

sense. What additional products or services would make sense for your

business to upsell a customer? After buying a hotel stay, it would make

sense to be upsold various activities to do surrounding the hotel,

transportation, or an upgraded room. The easier you can make the upsell

process, and the more complimentary the upsell is, the more likely folks

will buy your upsell.

Help businesses overcome low

customer loyalty…

• Follow up with the new customer.

• Communicate with your new customers. Be real with them. Provide

updates, coupons, announcements, and always work to reinforce value

and a reason to re-visit your business and bring friends with

them. Whenever communicating with a customer, offer something

extra. Don’t miss opportunities to remind people what’s new and good

about your business. Following up properly means that you need to

develop a customer database and use it often. Follow up via multiple

channels such as email, Facebook, text messages, Twitter, LinkedIn,

Pinterest, etc.

Help businesses overcome low

customer loyalty…

• Paint a picture of future purchases.

• Let your customers visualize what new purchases with your company will

be like. Remind them how much they enjoyed buying from you initially

and ask for them to purchase again. When you help a customer relive

their initial experience through pictures and videos, it compels them to

want to experience it again.

Help businesses overcome low

customer loyalty…

• Develop customer reward programs.

• Offering promotions that are only available to previous customers can help

grow and nurture loyalty and get those folks back in your door. You can

offer this via direct mail postcards, letters and phone calls, and many

online channels.

Help businesses overcome low

customer loyalty…

• Stand behind your business.

• Offering guarantees on your products and services forces you to always

strive to provide the most value and the best service. The best way to

capture a customer for life is to offer a refund when needed. Product

guarantees should be at the forefront of customer support

programs. Offering quality customer service and support goes directly

with this.

Common Merchant Related Questions

• Have your merchant materials always ready to give away.

Business cards, coozies, pamphlets, mission statement,

guerilla marketing, etc.

• Current percentages being charged to the merchants are

often times hurting the merchants. BE flexible. Strive to

please your merchants.

• Investigate local laws and standard local rates to find out

typical pay scale & / or commission for sales reps.

• Assemble Your "Street Teams“ and have them hit the ground

running.

Once you are in the door…

• Get Contracts signed.

• Negotiate price points. Typically, businesses offer 50%-90% off a

product or service on a daily deal. Please get creative.

• Coupon redemption. Have merchant print out voucher numbers and

empower employees to mark coupons as redeemed – either online or just

physical paper.

• Merchant follow up. Help merchant come up with a great plan to

squeeze visitors email addresses and work up a great follow up plan to get

them back in the door. (2nd tier potential)

• Request deliverables. High quality picture(s) of product or service,

original price points, and fine details that will help you formulate the best copy

for the merchant.

Strategic Partners

• Find 3 strategic partners who have a list built up of your

target market.

• Search for folks successfully using an optin form with your keyword

credentials (search engines, LinkedIn, Facebook, Forums)

• You can also potentially work out blast or advertising arrangement with

merchants on your potential partner list.

• Looking for an email blast / blog post / advertising arrangement with

them.

• Affiliate percentage / future ad space / future email blast / what can you

do for them in exchange?

Strategic Partnerships

• The possibilities are endless…

Search Engine Optimization & Traffic

• Guest contributing to high trafficked blogs.

• Use Virtual Assistants for lead generation, link-

building, and mundane tasks that waste your time.

• Use the HC Traffic Pro software and regularly

syndicate high quality content & media across the

web.

• Issue relevant and important press releases every

couple of weeks. Contact news sources.

If you are not yet a Daily Deal Builder

client, we invite you to join us and

launch a daily deal site by visiting:

dailydealbuilder.com/go

Thank you,

Marc Horne & Tyler Horne

support@hcdesk.com | 800-794-7192