Everyone continues to talk about the “daily deals” email trend, three years down the road from its introduction. Groupon, Living Social and hundreds of look-alike sites have had dramatic impact on retailers and restaurants — some good, some bad.
These coupon-selling websites position themselves as an easy path to new customers, and there are certainly success stories. But many businesses have been overwhelmed with unanticipated, huge numbers of new clients who have no intention of returning to purchase goods or services at full price. Instead, they simply follow their addiction to deals and move on to the next cheap offer. So much for brand loyalty. Or even profitability.
Which brings us back to two key brand-building basics:
Know your customer. Understanding exactly what drives your current customers to continue their relationship with you underlies all future decision-making, from target marketing to site selection. It’s the intelligence that builds predictive models and helps you find more customers just like the ones you have.
Service, service, service. Competing on price alone is not sustainable for most businesses. But every customer wants to feel valued. When you know — definitively — what your customers value about your services, you’re miles ahead of the competition.
Major lesson? Direct your resources toward learning more about your current and prospective customers than you know now. You’ll have a customer foundation you can build on no matter what sort of “deal” trend surfaces.