Offering a "deal of the day" is a very, very long-standing convention to drive consumer interest and a call to action to visit one's store and/or site. It's a blunt instrument to drive traffic shaped by the idea that once a consumer is engaged, one could showcase a broader offering and drive additional sales beyond just the heavily discounted item. Deals work to generate revenue and liquidate product in the short term. Deal of the day offers have exploded with the help of new models (e.g., LivingSocial, One Kings Lane, and Google offers) and the distribution power of social networks.
In February, I wrote a piece entitled "Facebook: The Case for Commerce Gets Stronger," which made the case that Facebook has become a meaningful source of referral traffic for e-commerce, as evidenced by Amazon securing 7.7 percent of its traffic in Q4 2010 from Facebook. A meaningful percent of that Facebook referral traffic was realized from click-throughs on daily deals posted on the fan page, and pushed to the stream. Consumers were "liking" brands to get access to deals.
At the same time, Twitter was growing as a consumer favorite for accessing deals. From #Deals to @googleoffers, @Amazondeals.com, and @TargetDailyDeals, consumers are following in big numbers.
Amazon now has close to 250,000 people getting the deal of the day in its Twitter stream.
Target, not far behind, has close to 200,000.
While the audience on Twitter is still much smaller than the audience on Facebook, I would argue that Twitter will still yield better results for retailers looking to communicate daily deals. Here's why:
Meet Your Favorite ClickZ Contributors
Many of ClickZ's leading expert contributors will be at ClickZ Live, the new online and digital marketing event kicking off in New York (March 31-April 3). Hear from the likes of: Jeremy Hull, Lisa Raehsler, Andrew Goodman, Bryan Eisenberg, Mathew Sweezey, Aaron Kahlow, Stephanie Miller, Simms Jenkins, Jeanne S. Jennings, Dave Hendricks and more!
Cathy has over 20 years of experience in both multichannel and online retail and a deep understanding of consumer needs and goals. Cathy's proven track record spans a range of industries and companies, from start-up ventures to multibillion dollar operations. Cathy is currently a Board Member at Ulta Beauty (ULTA), the largest beauty retailer that provides one-stop shopping for prestige, mass, and salon products and salon services in the United States. She has served as SVP, marketing & sales at PowerReviews, the world's most widely deployed social commerce platform, where she was responsible for overseeing the company's rapid customer and revenue growth. Prior to PowerReviews, Cathy held executive-level positions at Walmart: chief marketing officer Walmart.com, vice president of market development, global e-commerce, and vice president of product management and multichannel integration. Ms. Halligan has also held executive positions with leading retailers Williams-Sonoma, Gymboree, and Blue Nile, and was an associate partner at Prophet, a leading management consulting firm. She started her career as a marketing coordinator at Lands' End.
For real-time social commerce news and updates, follow Cathy on Twitter at @CathyHalligan.
March 19, 2014