Bright Future of Daily Deal Websites


In the past two years the websites dealing with daily deals have been seeing very high growth. There is no sign of these sites fading out anytime soon. In fact, it is predicted that this industry will see a growth rate of 35%. It means that by 2015 these websites would do a business of almost 4 billion dollars. It is incredible, considering that in 2009 this industry had not crossed even 100 million. There are other figures that predict higher growth. These predictions make the daily deals industry a very attractive and profitable proposition. While there are also other industry experts who think that it is a bubble that is going to burst anytime. In any industry innovation is the key to sustain the momentum of growth. The future of daily deals websites looks bright with the present rate of growth.

Groupon reported sales of $33 million in 2009. A year later the figure was $750 million, a growth rate of amazing 2,300%. The site’s popularity is continuously rising and it is considered an invincible competitor. At the same time, there is still space for smaller daily deals websites. Groupon has brought in national recognition for the daily deals industry, which a start-up would have found difficult to achieve. Even with so much popularity of Groupon, its customer base is not loyal. Users visiting the site are always looking for the best deals possible, and so they are not shy of trying out other similar services. There is LivingSocial from Google, as well as hundreds of smaller companies that offer this type of service. It is common for users of Groupon to receive lots of daily deals in their e-mail inbox every day.

It only confirms that the market is still open for new entrants. There are other analysts as well who predict over saturation. Consumer behavior cannot be predicted; they may love a service right now but next year they may move to a service that offers better deals. The example of MySpace is there to see. It died without making any significant difference. Users of Facebook dislike several changes but eventually manage with the new setup, because these changes make the site more useful. The future of daily deal websites depends on how much savings their visitors are able to get. If a hundred competitors come up with the same or better deals then it would be difficult for Groupon to retain the loyalty of its consumers.

By transforming itself, has been doing quite well. Initially it offered a single discount product everyday but later on it moved to niche deals. Rather than trying to provide deals for everyone, it started targeting tech buyers, fashion conscious people and parents with its new offers every day. Better future of daily deals websites is possible only when their owners use similar effective methods. Products that can be targeted for a general appeal are limited in number. Subscribers also get bored seeing the same offers again and again. While there may be fewer sales with the niche marketing, the existing customers remain loyal because of the new offers. There are always new customers joining in and all this helps in keeping the growth rates high.

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