Loosen Daily Deal Use Restrictions

About 30% of daily deal vouchers end up unredeemed by purchasers. Researchers at Clemson University, The University of Texas at Austin, and University of Richmond asked what this means for marketers’ use of daily deal promotions.
     The top-level reason for nonuse, according to the data, is regret about buying the voucher. This means purchasers come away from the transaction feeling they’ve lost money. Although the merchant and the daily deal aggregator have received payment, the consumer is left with a sour taste toward both parties, and therefore negative longer-term intentions. In the shorter term, the merchant has missed the opportunity to show off their offerings in order to gain a new regular customer.
     Purchaser regret arises because of the drive and then frustration of restrictions. Consumers who buy daily deal vouchers are especially impulsive and price-sensitive. When they see restrictions on purchase such as, “Must be bought within the next three hours,” they give up resistances. But then when they discover restrictions on use, such as, “Must be used within the next three weeks on a meal for you and two friends,” they often feel the price in time or money of meeting the restrictions is excessive.
     Voucher use restrictions might be rigidly enforced. Benjamin’s story from the study: “We bought it for a restaurant out of town and by the time we got to the restaurant, it was 30 min after the hours stated on the Groupon that it was effective, and the restaurant wouldn't accept it.” Benjamin and his companion had never dined at this place before and were excited about trying it. Ideal prospects for a daily deal promotion. But because they were new, they had trouble finding the place, so were late. Ideal prospects for feeling furious toward the restrictions on use.
     Toil at ensuring your voucher purchasers fully appreciate all restrictions on use. Then show toward voucher users the gracious flexibility associated with welcoming every valued customer. In return, expect gratitude. With all customers, including your regulars, who come to you with a daily deal coupon, build an emotional connection. Go for gratitude over happy. In my experience, it’s more profitable to have customers grateful to us for what we're doing for them than happy about the consumption experiences. When the deed being done is a substantial discount on quality products or services, working the relationship for gratitude is a natural.

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