Can “daily deal” sites do a better targeting job?

Short answer to the question in the headline: Absolutely! The proliferation of Groupon-style sites is a hot topic on RetailWire, and here’s my take from a recent discussion:

Targeted “daily coupon” sites fit right into the evolutionary cycle of retailing. In the days of pure bricks-and-mortar, retail evolved from mass appeal (department stores and general merchandisers) to more targeted big box specialists. (There are relatively few general-appeal “nameplates” compared to 40 years ago.) You can point to the same trend in e-commerce, with targeted websites driven by a wealth of information about consumer preferences vs. sites aspiring to be “all things to all people.”

The same trend is happening fast on the “daily deal” front, even from sites like Groupon or Living Social. The trick is to ensure that the micro-targeting is not so focused that it misses some broader volume potential, and also to ensure a profitable outcome for participating merchants.



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