When Groupon first made its revolutionary bargain debut, it quickly caught fire, offering unbelievable discounts by having a certain number of consumers purchase a given deal to receive the massive mark-down. As the public awaits Groupon’s IPO, a new (or not so new) contender has entered the deal-of-the-day game, and is already proving to be a formidable force to be reckoned with.
Although Google has gained considerable ground in its rivalry against social powerhouse Facebook with Google+, the online networking site is now threatening to crush savings giant Groupon with its new Facebook Deals program. While Groupon has amassed eye-boggling revenue, as time went on and consumers learned more about the reality of the daily deals, they suddenly seemed less shiny and new. Since Groupon works chiefly via email, there aren’t many ways for members to choose which deals make it to their inbox. Not many men can (or will) opt-in for a mani/pedi deal, and although the company allows users to enter personal information (gender, age, zip code) to help tailor the deals to their tastes, the options are somewhat limited. With Facebook Deals, discounts are offered to users based on the things that they’ve “Liked.”
Another area where Facebook Deals trumps Groupon is its Foursquare-like check-in deals. Consider this: if you wake up to a Groupon for lunch at your favorite local restaurant, it may seem enticing, but since you’re not sure if or when you’ll be back, you’re less likely to purchase the deal right then. However, if you just happen to be eating lunch at that same restaurant and check in on Facebook, there might be a deal offered to you on that restaurant’s check-in page that can be redeemed at the time of purchase. Facebook Deals works by allowing users to use points they’ve accumulated from a variety of payment models, called Facebook Credits. Facebook Credits may be purchased through virtual games on the site, may be purchased outright, or can be awarded free of charge when a company offers free points for interacting with the brand (value-exchange engagement advertising).
The Facebook Credit system, immediacy of need and Facebook’s ability to only show you deals that matter to you make the new Facebook Deals program a hands-down victor over Groupon’s group discount model. Facebook Deals offers a more balanced symbiotic relationship with consumers – brands receive increased exposure and advertising and consumers enjoy deals based on their preferences and when they want them. Facebook Deals is just another amazing opportunity for companies to utilize Facebook marketing. Interactive marketing offers unprecedented benefits to brands, and allows consumers to directly engage with companies. For more information on social media marketing, contact Blue Interactive Agency today.