Daily Deal sites, also known as Collective Buying sites are a recent phenomenon sweeping the nation for both consumers and business owners. It’s a coupon/discount site that offers exclusive deals if a certain demand is reached through the power of collective buying.

For consumers it’s an opportunity to try a new place or activity at an unbeatable price. For business owners, it’s an opportunity to showcase their food or services to a new audience and earn loyal customers. This sounds like a win-win situation! However I’ve been hearing many business owners complain about their brand being devalued and not gaining any repeat business when they participate in a Collective Buying campaign.

Before reading any further, keep in mind, Collective Buying, just like any other marketing method is not for everyone. It may not be the right strategy for your business so if that’s the case, there’s absolutely no reason to force a deal, then to be upset later that it didn’t work. If you do decide to embark on Collective Buying here are tips on how to successfully execute a campaign to gain new exposure, repeat customers and enhance the value of your brand.

1. Positive Attitude – Attitude is everything, especially when it comes to creating wealth in your business. Don’t create a self fulfilling prophecy with the mindset that Deal sites don’t work. I hear so many business owners complain about using these sites, then submit a deal anyway only to affirm their original believe that it doesn’t work. Just as you pay for any other marketing campaign and understand that the money is an investment, you are paying for your Collective Buying Campaign through products or services. Many business owners constantly complain “I am losing so much money”.  Believing that the products you invest is “losing money” automatically puts a negative perspective in your mind about the entire process. Go into the campaign knowing that this is a positive marketing investment and stop thinking about how you are losing money. You are gaining customers. You are getting new exposure and you’re driving new traffic into your location.

2. Create an offer that Adds Value- You want customers to associate your deal as having high value rather than a cheap service. It is true that once some customers receive your service at a discounted rate, they’re less inclined to buy your product at a regular rate. There are many ways to word your “deal”. If 50%-60 off sounds absurd for what you’re offering, get creative. I recently bought a deal that was $20 for “Wine Tasting for Two and a Bottle of Wine”. You can create “Two for One” deals. Deals that charge a price and offer service such as “$25 for a 5 course Meal”, “$50 for a Massage and Manicure” sound more valuable than “50% off a 5 Course meal”. All of these examples offer a great deal but they’re also creating more value with your brand because they don’t mention anything about discounting a service.

3. Encourage Customers to Share – When offering a collective deal, this is the best opportunity to get your loyal customers to share your business with their friends or family. You’re allowing them to invite others to try something they love at a great price. Post the deal to your own networks such as Facebook, Twitter, Email list and blog. Allow people to buy multiple deals to give as gifts. Your best advocates are those who already love your product or service so make it easy for them to share your business with their friends

4. Prepare You Staff– Ensure you have extra staff on hand to handle the immediate increase in business as most people will redeem their deal immediately. In addition, ensure your entire staff is educated and aware of your deal. There is nothing more embarrassing for a customer when they come in to your establishment to redeem a deal you’ve offered then receive a blank stare from your employee who proceeds to say they have no idea what the customer is talking about. This is a sure way to guarantee your potential new customer won’t feel comfortable coming back.  Make sure your staff is not only aware of the deal but completely understands all the fine print. This allows your staff to welcome and embrace the new customer. I’ve heard complaints of many places providing poor customer service to Deal users because they don’t think they’ll ever return. Your business should be doing the complete opposite, give the Deal user  exceptional service and give them a reason to return.

5. A Reason to Return – Many people who use collective buying sites are looking for the best deal. After purchasing your deal they might move on to the next deal they find. When they’re in your establishment you have their full attention so this is your chance to get them to commit to coming back before they move on.  For example, if you’re offering yoga classes and the customer purchased 1 month for $50, you can offer them that same rate or slightly higher if they sign up for 3 more months. If you’re offering spa service such as a 1 hour massage, you can offer your customer a massage package if they sign up immediately where they can sign up for 3 more massages at a discount.  This is an opportunity for you to encourage your new customer to return before they even have a chance to move on to the next deal.

Have you purchased any daily deals? Please share your favorites, your experience with the establishment as a deal user and if you returned as a customer or not. If you don’t already have an account to check out daily deals, here are some popular sites you can sign up for to get the scoop on the best deals in your city:

• Groupon
• Living Social
• Plum District
• BuyWithMe