/ daily deals

The Future of Daily Deals

So where are daily deals going?

The evolution of daily deals will change into a more personalized version of what Matt Lauzon (Gemvara) defines as **me-commerce. **Source

Lauzon refers to the Gemvara experience as ”Me-Commerce,” explaining that it lies at the intersection of customization, with customer care like Zappos and seamless discovery like Netflix.

Group buying is slightly different as it’s version of me-commerce will focus more on appealing to specific market segments. Take Jackthreads.com as an example. They sell men’s street wear and lifestyle fashion. The men’s fashion market was undeserved and showed a huge potential and upside. People told founder Jason Ross to go with women’s clothes, but he stuck with men’s and it has paid off.

Even with competitors like PLNDR (created by Karmaloop), they have been able to continually grow and really carve their space out. How do you do this? By understanding of who your customer is and creating a product that specifically solves their needs. I want to open the email and see things that appeal directly to me. I don’t want or have the time to sort through inventory try to find what I like. So PLNDR if you’re reading this, you need to separate the site into one for women and one for men.

Specific niche group buying sites don’t just apply to clothing or restaurant deals. Inspirato is a group buying vacation startup aimed towards the luxury timeshare market. They have taken the standard resort model and put on a dramatic twist. By *only leasing *the different luxurious properties, they are able to have a ton of options for their users. So after you cough up the $9,500 registration fee, you can travel to their locations at a variable nightly rate. Sounds good right?

[![](http://benhebert.com/wp-content/uploads/2011/05/inspirato.png "inspirato-property")](http://benhebert.com/wp-content/uploads/2011/05/inspirato.png)Looking for volunteers to take me here

Why is this going to happen?

There are two fundamental problems with the major group buying websites. The first problem being that the deals do not apply to everyone aka **they’re not personal enough. **I understand that the appeal is to target the largest audience possible, but if this were always true then why has advertising on niche blogs been so darn effective? I’m not interested in getting my nails done or learning how to ride a horse. I skip the inbox with the deals because they’re almost like spam now. If a deal is good enough, I’ll find out instantly from my twitter feed.

The other problem is that consumers of daily deals have ZERO brand loyalty. Acting under basic self-interest principles, consumers are only interested in the best deal possible. It’s why LivingSocial was able to put itself on the map with a $10 for a $20 gift card to Amazon. They sold over 1.4 million deals in the span of a few hours.

Groupon spent all of that money on a terrible Super Bowl ad to gain market share, but the daily deal market cannot be controlled. As we get further into the life cycle of daily deal websites, consumers will look for more personal options that meet their needs. And then the bubble will burst.

Note – This post was inspired by a recent Techcrunch blog about LivingTechie another daily deal site well, at least until they receive a cease and desist letter from LivingSocial). The catch? Only people with email addresses of companies listed on Crunchbase can sign up. What a fun way to create exclusivity for your nerd buying club.


I make money online through websites and business consulting. Everyday I'm challenging myself to learn and do more.

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