Daily Deals present a unique set of issues regarding consumer redemption rights and merchant obligations. While a Daily Deal Voucher is a new instrument, leading vendors (notably, GroupOn) assume the most stringent “worst case” scenario, treating a Daily Deal as the equivalent to a Gift Card. This article explores the implications of these regulations.
This informative guest post is from Seth Gardenswartz, VP of Business Development and General Counsel for SpaBoom, a leading marketing solution provider to Spas, Salons and Restaurants.
An often cited problem with Daily Deals it the heavy traffic effects that can overwhelm staff, and lead to an inferior customer experience. Consumers increasingly seem to be shopping via daily deals and buying for future consumption, creating a new “desk drawer” of pre-purchased products/service.
What are the redemption patterns of Daily Deals, and how is the consumption pattern trending? What are the real “breakage rates” – vouchers left unclaimed on expiration of the promotional offer?