Attracting new customers through advertising is a pillar that BizX and daily deal sites like Groupon and LivingSocial pride themselves on. Each helps clients leverage extra capacity and turn it into revenue. Though they share a common goal, they have two very different approaches. The daily deal sites center on the success of the single item or event offered. In contrast, BizX strives to better the long-term success of the business.
Who are you really marketing too?
With Groupon and LivingSocial, you market your excess inventory to anonymous buyers at a pre-determined discount. While it sounds like a great idea on the surface, it can do more harm than good, as these platforms can charge up to 50% of the revenue from these offers. After Groupon takes its cut, promotional amounts are subtracted, and fixed costs are factored in, there is little, if any profit left for the business. Many companies actually end up losing money on these kinds of marketing tactics. Not to mention, by significantly discounting your product or service, you may be hurting your brand by appearing less valuable in the purchaser’s eye.
But that’s not the BizX way. BizX instead focuses on its goal “to improve the businesses and lives of [their] members.” Furthermore, where Groupon demands up to 50% of the revenue, BizX only asks for a 12-15% transaction fee, leaving plenty of profit for the business to use in other areas.
All in the name of new customers right?
Unfortunately, with daily deal sites, that is not always the case. Often times, Groupon and LivingSocial attract one-time customers, who are looking to cash in on a deal and move on, leaving participating businesses with less money and no return customers.
BizX does the exact opposite of this, providing businesses access to other reputable companies with years of membership. Moreover, these members are motivated and excited to spend their own BizX dollars.
Finally, BizX and the daily deal platforms are great for advertising. But running a promotion on Groupon and LivingSocial can only act as one method of advertising - online. BizX on the other hand, can help you advertise in almost every way: radio, TV, print, billboards, bus boards or online marketing.
For consumers, Groupon and LivingSocial are great for date night, saving a few bucks and the occasional Christmas present. BizX, however, can be used for all of these things, but is also great to reward your employees with, maybe remodel your home with and most importantly, gain new, loyal customers. Quite simply, BizX’s success is your success.
Check out these success first hand!