Marketsmith CEO and President, Monica C. Smith, has always been a fan of Jay Samit, CEO of SocialVibe, and his writing. Recently she shared an article of his she loved, How Facebook Deals and Credits Can Crush Groupon
. In this must read article Samit strongly promotes the use of Facebook Deals, which allow brands, who own a Facebook page, to engage targeted potential customers from the broader Facebook member community. By sending out deals that would interest specific members based on their profiles and on-site activity, Facebook Deals brands are able to capitalize on niche marketing, and compete against flash sale sites, such as Groupon and Living Social, according to Samit. As both a marketer and consumer I find his argument persuasive – Facebook Deals have the potential to increase both sales and customer satisfaction.
The difference between Facebook Deals and email coupons is the ability to use target marketing, pay with “credits” and share deals instantly. I love a good deal and have signed up in the past for these emails, but I find myself frustrated when weeks go by and I do not see one deal that pertains to me. Brands that use Facebook Deals have an easier time choosing who sees their deals. They know what types of users are visiting their page and therefore can target their offers. The more relevant the offer the more willing people are to purchase the deal presented. Groupon and, others like it, do not have the capability of selecting different demographics. They reach a wider and less focused audience, and therefore may have a higher rate of unopened emails.
Another great benefit that Facebook Deals provide is the option to pay for a deal using Facebook
“credits” otherwise known as virtual money. This is a great way to help alleviate the credit card hassle and make payments that much faster and easier. It would also allow brands to give away credits to loyal customers, increasing interaction with the brand. What a great way to open a new line of communication with customers.
Further research on Facebook Deals also led me to find that once a Facebook Deal is purchased by a consumer a post goes up on the purchaser’s newsfeed, which automatically alerts their Facebook friends of that deal. As marketers we are constantly thinking of ways to promote our brand through our loyal customers. Now Facebook Deals, using the tools of social media, give us that opportunity in just a few short clicks. Customers will be helping the brand by driving traffic to the site.
After reading Jay Samit’s article I agree with Monica, his writing is insightful, and Facebook Deals really do seem to be a win, win for marketers and consumers alike.