The school holidays are over, the house is quiet, the wind is howling outside and I take a moment to enjoy my breakfast and coffee while catching up on the recent papers – I’ve been meaning to read the Business Herald from Friday – an article about the plethora of daily deal web offers.
I admit that, although I am subscribed to a few of these sites, I have actually become annoyed by their constant appearance in my in-box; I always look at one of them (the attractive GrabOne email), I don’t ever look at another one (because the images do not even load in my inbox – have they considered mac users?!), but the interesting thing is I have Never bought anything. Why is that? I ponder.
It’s a little bit like the constant barrage of Sales from big retailers such as Farmers and Briscoes, Rebel Sport etc and holiday sales like Boxing Day, Easter. I am immune to it.
It’s like the Entertainment Voucher books – great if you don’t mind going to different places, but what about your local favourite restaurant – I like to go where I know its going to be great.
It’s like wine on special in the supermarket – why would you buy it full price when you know next week it will be on special again?
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Perhaps I am just odd, perhaps I like to rebel against the norm, but overall there are a few factors at play here for me:
1. Convenience – I am a busy person and I don’t like to have to buy on a certain day because there is a sale. I don’t like to fight with the crowds or be given a purchasing deadline
2. Timing – I only buy something when I need it – I don’t like to buy ahead for just-in-case; I like cashflow, I don’t like credit.
3. Value – I believe that there Will Always be a Sale or a Deal on something when I want it and am ready to buy – I will look for it then. I have also been known to simply ask for a discount when I want one. And if it’s something I really want then there is Value, regardless of price
4. Loyalty – I like to buy from people I know , like and trust and who offer great customer service
5. Belief – is it really a Deal? I believe that in many cases the cost of products and services have adjusted downwards in response to the economy, so is the RRP/Normal Price actually Real anymore? It’s not the normal price, if no-one pays it anymore. Why would they? That’s why the vouchers eg. pay only $15 for a $30 voucher, are a “real-deal”.
6. Choice – there’s so much choice out there – if one nice wine is not on special today, then we’ll buy the other nice one that is
7. Vanity – I like to be special ☺ I like to be treated as a special customer, someone who is rewarded for their loyal business
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The Psychology of Purchasing has a lot of factors for the business to take into account when marketing to their customer. Will these deal sites take away from the normal advertising mediums? – yes, I’m sure they will. Do these Deal Sites work for businesses – yes, they work for Some. But that is a subject for a different article altogether (you can read a colleague’s view from the US here along with an interesting infographic)
Meanwhile, we are a small country, just 4.4 million people – surely it is not possible for all of these brands of daily deals to survive (according to the Herald article there are 80 of them out there!). We are traditionally a society of deal-lovers (isn’t that what The Warehouse is all about – it’s probably only a matter of time before they start offering daily deals on their website).
The big deal-sites will predict the demise of the smaller ones, but I wonder if those smaller ones are more focused, and, if they stay that way, maybe they could survive, for example, if you are a new parent you would actually be very interested in daily deals that are about baby product, wouldn’t you?
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So… no, I haven’t joined Treatme or Living Social, or Yazoom (I hate silly names) and nor will I subscribe to Groupon – purely because I do not want to litter my in-box further. Will I unsubscribe from GrabOne? – probably not, because my personality also dictates that I don’t want to miss out on anything and I am very loyal (I like that they are a NZ-entrepreneurial start-up).
All this has nothing to do with the deals themselves. It’s about consumer behaviour. I will pay what I believe is Value and if I want a deal on something, I will find it… in fact, it will Find me.… because all these sites will soon start using the location models and personalised offers and instant deals (now I’m getting more interested!).
The deals will be designed for you and your interests. Look out for Facebook Deals on the horizon and it will be a whole other ball-game! (oh dear, I am sure that the whole privacy thing will start raising its head again…!)
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So, what about you? Are you addicted to these Daily Deals? Do you actually buy? Do you look on with interest, like me, and await something really good to be offered to you, at the right time and the right place? … Love to hear your perspective.
