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What's the deal? More thoughts on deal sites for customer acquisition

Just a quick update to yesterday’s question on the value of deals sites. As I suggested, you can use deals sites as a customer acquisition tool, so long as you plan ahead on how to convert “deal shoppers” to real customers. How can you do that? Well, for one thing, pay attention to the customers who come in with your deal vouchers. Let them know that you also provide special offers to repeat customers through your own marketing and ask them to join your email list. Then market targeted offers directly to these folks, focusing in particular on the value they receive.

Make sure you define the deal site customers as a separate segment in your marketing database. Over time, you want to understand whether these deals sites provide a good source of new customers or if, as I suggested yesterday, you attract only bargain shoppers unwilling to ever trade up to full price.

You can do the same with your web traffic, too. Justin Cutroni offers a handy look at using Google Analytics custom variables for e-commerce that you should check out/forward to your analysts.

It’s clear that everyone wants to get a great deal. But it’s a losing proposition if you’re constantly lowering your prices, particularly for a group that may never buy from you otherwise. Save the bargains for your best customers as a thank you. And look at the deal site segment separately to see if they’re worth it to your business.

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Tim Peter is the founder and president of Tim Peter & Associates. You can learn more about our company's strategy and digital marketing consulting services here or about Tim here.

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