In a recent article, the New York Times presents an argument on why Daily Deal coupon websites are a great deal for consumers, but not always worth it for the merchants who provide them.
The comparison below highlights some of the drawbacks of the Daily Deal offerings, and provides insight on how Smart Circle is different - and why its programs are more beneficial to both the merchant and consumer.
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Daily Deals fail to build customer loyalty. Merchants complain that since these coupons are one-time offers, there is “no loyalty” from customers – after using their coupon, they simply “get another coupon and go do it with someone else.”
Smart Circle promotions are designed so that they provide multiple visits to a single merchant. Repeat visits encourage and build consumer loyalty, and frequently lead to long-term relationships.
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Daily Deals are not targeted. Deals draw consumers from the entire Metro area. Merchants complain that people who purchase the deal typically live outside the typical 3-5 mile trade area and are therefore unlikely to return.
Smart Circle promotions are sold within the 3-5 mile trade area of client’s business. Smart Circle targets the geographic territory of consumers and businesspeople who live and/or work in the client’s trade area through local business canvassing and events.
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The “daily deal” industry is oversaturated. Merchants feel that “daily deal” marketing is being oversaturated by hundreds of similar, almost identical companies all trading to the same (internet) audience.
Smart Circle offers a unique, live person-to-person approach. Representatives interact one-on-one with individuals, engage them in conversation about their needs and wants, and then recommend to them clients that fit their lifestyle. Also, promotions are introduced by an on-site demonstrator at the client’s place of business, not in an internet environment.
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Daily Deals offer aggressive discounts. Merchants complain about the aggressive nature of the discount offered – at least 50% to the consumer and only half of that then paid to the merchant.
Smart Circle designs promotions that are more attractive to its clients, offering greater revenue and profits. Discounts are typically 25 to 30% off. Consumers benefit from receiving multiple uses – they save money with each use.
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Daily Deal consumers are hard to please. Merchants have found the typical daily deal consumer to be very hard to please. Since these consumers tend to be tech savvy, they are more likely to broadcast their dissatisfaction on the web.
Smart Circle’s Event and B2B channels service a select target audience. Smart Circle reaches out to businesspeople and the client’s targeted consumer, rather than simply blasting discounts to the entire market. Additionally, Smart Circle offers a 100% satisfaction guarantee on all of its certificates.
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