Daily specials websites: fad or future?

The online coupon-buying space is quickly getting crowded with daily specials or one-deal-a-day websites popping up across the nation. But are these websites just another online fad or are they here to stay? And how will the growth of these daily specials websites impact consumer loyalty?

Websites – such as scoopon.com.au, spreets.com.au, jumponit.com.au, and cudo.com.au – all follow a similar model: each site sends a daily email to its registered visitors/subscribers advertising a discounted product or service. Interested consumers then register for the deal and purchase a coupon to redeem the product or service in a prescribed timeframe. Businesses which feature their product or service on the website pay a pre-determined percentage of the sales to the site’s operator. In some cases, this can be up to 40-50% of the value of the offer.

Australian hair and beauty businesses tend to feature heavily on these daily specials websites.

Loyalty, customer retention and acquisition
Recent national research conducted by Newspoll* reveals that one-in-two Australian women consider their hair and beauty appointments important and one-in-five Australian men believe their hair and beauty appointments are important. It also reveals that eight-in-ten Australian women are loyal to their hair and beauty providers.

Global CEO of mylocalsalon and Shortcuts Software Rebecca Randle said in today’s highly competitive marketplace, it’s important for many salons and spas to attract new customers to ensure the ongoing sustainability and success of their business.

“These daily specials websites may help to promote your spa or salon and potentially acquire new customers. However, for the customer there is a level of uncertainty associated with the transaction because they cannot book their appointment when they purchase the deal,” Ms Randle said.

“A small business that offers a heavily discounted beauty treatment on a daily specials website may attract strong consumer interest and receive a cash injection, but may find it challenging actually meeting demand and client expectations, as well as managing cash flow and delivering the services (for example: 500 x 1hour facials) in acceptable timeframes to those who purchased the deal.

How mylocalsalon can create a win-win situation
“mylocalsalon specials are superior to the current coupon craze, as customers can take advantage of the special whilst also having certainty with confirmed booking dates and times. Participating salons and spas control the volume of specials provided, the discounted amounts, and the availability of the specials to ensure they are filling dead appointment space. It’s certainly a win-win situation for both customers and businesses, said Ms Randle.”

“Ultimately, it’s essential to deliver quality customer service and manage client expectations to ensure repeat business. Long-term, successful businesses are those that make their services and specials highly accessible to their existing and new customers.”