The Sweet Spot for Daily-Deals Discounts
Have you noticed that the daily deals hitting your inbox have become less attractive lately? You’re not alone. Customer fatigue is often pointed to as the reason for consumers souring on Groupon and its competitors, but saving lots of money never gets old. The problem is seller fatigue, which is rooted offering “try it, you’ll like it” discounts that are too drastic. Offering discounts that are excessively high attracts the wrong kind of customers and hurts the chances of potential repeat customers making full-priced purchases from the business. The suggested range for daily-deals discounts for products and services is 15-20 percent, according to this pricing strategy consultant. (Harvard Business Review)
