Deal Sites, Still a Deal

Economists marked the end of the recession over a year ago, but consumers are still tightening their belts and maximizing their spending dollars. We discussed Recessionista Chic trend in Sparxoo’s 2010 Trend Report, which explored comparative shopping to maximize savings, but there has also been a boom in digital discount sites, like Groupon, Jetsetter and Gilt Groupe. The popularity these sites suggest consumers want targeted content, with new, fresh deals to get the juices flowing and get awarded for passing on the savings.

Groupon, Jettsetter and Gilt Groupe are unique in and of themselves, but they are more similar than not. Groupon doesn’t require an exclusive membership like Jetsetter and Gilt Groupe, but there are elements that tie them together.

Niche market — Each discount provider occupies a niche market, with a highly targeted audience. Groupon focuses on consumers that want to shop and explore local shops and eateries, Jetsetter targets ambitious, curious travelers and Gilt Groupe is for trendy fashionistas.

Fresh Content — The thrill of the save. That’s why all of the popular discount providers offer daily or almost daily deals. Groupon sends daily emails and Jetsetter and Gilt Groupe have a similar offering. The brands are building more meaningful relationships by sending so many frequent emails.

Referrals — Though Gilt Groupe, Groupon and Jetsetter could have some strong WOM through their loyal audience, they offer incentives to make customers brand advocates and pass on the savings. Groupon gives members a $10 referral fee and Jetsetter and Gilt Groupe pay out $25. If saving isn’t enough, the discount providers dish out money to brand advocates that share the savings.

There are subtle differences between the discount providers, however. The most significant of which is Groupon offers deals to the general public, whereas Jetsetter and Gilt Groupe are invite only.  In fact, Groupon is very open about its savings. The site has saved users over  $555,079,872 on 13,194,111 deals and is convenient with Groupon apps, referral ads, widgets and even meetups. Jetsetter and Gilt Groupe are quite the opposite. Only members have access to more than a simple splash page and 500-word about section.

The popularity of discount sites speaks to the cost-conscious consumer in times of deep cutbacks. The cost-conscious consumer is not just the traditional Penny Saver coupon cutter. The diverse range of niche audiences Guilt Groupe, Jetsetter and Groupon is a testament to a wide variety of penny-pinching consumers — whether they’re local enthusiasts, trendy fashionistas or adventurous explorers. And referral awards, fresh content and exclusivity are just some ways to keep those niche cost savers engaged and brand advocates.