Daily deals are hugely popular with the vast majority of the discount-seeking general public. In the UK alone there’s a burgeoning number of companies looking differentiate their offering from competitors. Yet with so many different daily deals providers, some commentators are predicting a market on the verge of saturation.
Gerard Doyle, DiscountVouchers.co.uk’s CEO, gives his hard-hitting personal opinion on how the daily deal industry is likely to evolve over the next six months.
1. Breaking Point
We’ve seen a swell of discontent building so far this year, as more and more consumers voice their disappointment at deals that have not delivered. With OFT rulings and an ASA clampdown, something’s got to give. When it does, the role of an organisation such as the Global Daily Deal Association is going to be vital.
2. Industry Convergence
The discount economy is made up of several elements; daily deals, online voucher codes, printable vouchers etc. While each has its own strength, any business serious about surviving in such a competitive market will have to diversify their offer.
3. Second Wave Consolidation
Until recently, the focus has been on building databases and acquiring email addresses, with acquisitions and partnerships underlining this. Savvy businesses will be looking to create more strategic partnerships, so we will see different parts of the discount economy working together.
With a deluge of irrelevant offers hitting consumers’ inboxes every day, daily deal fatigue has become a reality. To avoid a diminishing database, companies are going to have to invest in far better targeting, using the data they already have and improving it to provide a more personalised service.
5. Tracking in the Real World
Tracking online purchases is easy. The next big step is to track offline purchases, so consumers’ credit or debit cards can be linked from the point of sale back to vouchers and offers they have seen online. Any company that can crack this is guaranteed to be the next big thing in affiliate marketing.