| Social Shopping. It's exploding. And it is evolving | | | | purchased the Groupon or LivingSocial deal only to |
| quickly. | | | | find out that the place was so inundated that |
| A year ago if you had asked me about social | | | | either they couldn't get a reservation for months |
| shopping I would have pointed you to Amazon | | | | or that the service and experience was awful. |
| and told you that the product reviews from | | | | If it were me and I was the owner of Le Petite |
| actual buyers were examples of social shopping. | | | | Retreat, I would treat every customer that came |
| Six months ago I would have told you about | | | | in through this promotion like they paid $500. |
| shopping aggregation websites like Kaboodle which | | | | Forget that they only paid $79. Assume they paid |
| allow you to view, comment, and receive deals | | | | more than the average customer. Don't ignore |
| from multiple retailers. Two weeks ago I would | | | | your regular patrons, but they already love you. |
| have told you about the new Facebook | | | | These new customers are just that, new. And |
| integration into websites like Levi's "Friend Store" | | | | you know the saying, you only get one chance to |
| and how you can see what your friends like. And | | | | make a first impression. Those 1,300+ people |
| today. Well today I'd tell you it's all about what I | | | | have the power to change your business. Think |
| call the Discount Crowdsourced Shopping | | | | long term. This is going to be one of the most |
| Experience (DCSE) being powered by Groupon, | | | | expensive advertising campaigns you've ever |
| Living Social, Gilt, Blackboard Eats, Wines Til Sold | | | | done, but also the most targeted. A true game |
| Out (WTSO) and more. | | | | changer. |
| I'll give you a quick glossary-like description on | | | | But my guess is that they are not prepared to |
| each referenced DCSE at the end of this post, | | | | handle this. How could they be? I wonder what |
| but first let me explain what this is. | | | | they thought would happen from this Groupon |
| A few months back I wrote a post about a new | | | | promotion? 500 people maybe? I think I'll ask |
| business ready to take off. What I described | | | | them. If they respond, I'll let you know. |
| there was the advancement of location-based | | | | Getting back to the central point of this post. |
| applications like Foursquare, Gowalla, and MyTown | | | | Social shopping is exploding. This is the next big |
| combined with recommendation websites like Yelp | | | | thing. It's not one piece of technology. It's a quick |
| and Citysearch, and how they were providing | | | | progression in social media merging with |
| huge opportunities for shop owners to drive | | | | eCommerce. And it is very exciting. |
| people into their stores. DCSE's go the next step | | | | As I mentioned in that other post, if you are a |
| and offer discounts to drive you into these | | | | shop owner and your product is good, the |
| stores. All of these DCSE's are essentially mailing | | | | opportunity is amazing. The best in history. It's |
| lists and you get regular (often daily) deals sent to | | | | targeted, it's relatively easy, and the cost is |
| your inbox. | | | | probably the best investment you can ever make |
| With these DCSE sites like Groupon and | | | | (some of these things are free). Get your head |
| LivingSocial, people are flocking to them because | | | | around it. If you can't, hire someone to do this for |
| the deals are often tremendous, averaging in the | | | | you. If you can't find anyone, tell your niece or |
| neighborhood of 50% off of very desirable | | | | nephew to study this stuff and start trying things. |
| products and meals. Groupon is the leader at the | | | | Shoot, tell them to email me, I'll point them in the |
| moment, but if you know anyone that uses | | | | right direction. |
| Groupon, odds are they are also using one or | | | | As promised, here's a pseudo glossary to give |
| more of the others I mentioned. Note: part of this | | | | you some quick explanations of some of these |
| depends where you live. If you are in LA or New | | | | sites. |
| York, you can see it in action. If you live in Boise, | | | | Groupon and LivingSocial are essentially email lists. |
| this hasn't quite gotten to you yet. But the model | | | | Go to their websites, sign up and each day you'll |
| is working and odds are you will see this soon in | | | | get an email sent to you with a deal. You have |
| your town. | | | | one day to buy the deal. You pay in advance and |
| Let me tell you how I know it's working. | | | | then get an email confirmation that you print out |
| Last week Groupon offered a deal to celebrate | | | | and take with you. A common deal is 50% off. |
| Mother's Day. A local day spa in Los Angeles, Le | | | | Thus, you might get an offer for $50 in food |
| Petite Retreat offered two treatments that | | | | from a restaurant for $25. You pay in advance |
| normally cost $235 for only $79. A 66% discount. | | | | and you have a few weeks or sometimes |
| Incredible, right? I couldn't resist, so I bought one | | | | months to actually use the deal. Think of it like |
| for my wife. | | | | buying a gift card. You paid $25 but now you |
| Guess how many others bought the deal? If you | | | | have a voucher for $50. |
| had asked me, I would have said 200. Maybe 300. | | | | Blackboard Eats is a similar concept, however, |
| The answer: 1,332. | | | | you don't have to buy in advance. You just get |
| Yes! So that is why I can tell you, this is | | | | an email telling you about a great discount at |
| exploding. I don't know the day spa business. But | | | | trendy and often upscale restaurants. If you like |
| my guess is that this place just booked more | | | | the offer, they'll send you a text message or you |
| business in one day than in the past few months | | | | can print the deal out and take it to the |
| combined. (based on the $79 fee, the small | | | | restaurant for your discount. It's a great way to |
| business just grossed over $105,000 in one day.) | | | | try a restaurant that you've been thinking about |
| Now, this is a good news / bad news situation. Or | | | | but weren't sure about making the investment. |
| more like a be careful what you wish for situation. | | | | Gilt, also known as Gilt Groupe, is a site that |
| If you are a little shop that gets 20 customers a | | | | discounts high priced fashion. You have to be |
| day. Heck, maybe even 50 on a great day. How | | | | invited and once you get the invite, you get daily |
| do you deal with an influx this big? | | | | emails offering you tremendous deals on jewelry, |
| Very carefully. | | | | clothing, and other luxury items. |
| I've heard numerous stories lately where people | | | | |