Monday, November 04, 2013

A question for all the marketing people out there on is a daily deals website. They sell discount 'vouchers' (in electronic form) for various products and services. The Company negotiates various deals with manufacturers or service providers and offers them to their customers, less a margin.

The question is, what does offer that cannot be done more effectively by a bulk sms offering a discount direct to users? Or, a direct discount on a credit card offer?

In effect it's about sending a discount offer to a set base of customers. In the case of a credit card offer there is the certainty that the customer exists. There is also other information on spending patterns, which cannot (and should not be) shared at the individual level but may be used for macro level profiling. only has website hits, Facebook 'likes' and records of past purchases to offer- a far more dubious proposition in my view.

I have no idea of relative costs between the two, can anyone volunteer any information?  I suspect's charges to be a lot higher than that a credit card provider and its customer base to be transient.

1 comment:

David Blacker said...

well, a bulk-sms is a one-time thing that will go to a fixed mailing list and then no longer exist. will make an offer available to everyone on their mailing list as well as have the offer on their site, accessible to everyone visiting. so it is a platform as opposed to a message.