Deal or no deal?

I just found out that Facebook was going to discontinue Deals (after doing more research it became clear that the release was about daily deals, not check in deals)! This comes up as a surprising news in Australia, since the launch announcement only happened a week ago with 7-Eleven, Commonwealth Bank, KFC and Westfield as initial partners.
Allfacebook reveals that Facebook USA will take daily deals off the market based on
a small business survey done in February!


The research suggested that half of the companies that had used a deal type of service don’t plan to use it again. The small business survey conducted by MerchantCircle found that 55 % of merchants who’ve offered a daily deal through a group buying service don’t plan to do so again. The report suggests that merchants prefer to use free marketing methods via social media, rather than pay premiums, and that the businesses prefer to use proven promotions rather than new ones. Most of the small, local businesses surveyed by MerchantCircle devote minimal resources to promotions: 37% say they don’t have enough time and other resources for it.

From a business point of view, the results of MerchantCircle’s survey are consistent with the social benchmarking study conducted by Nielsen and Community engine; it lists resourcing as one of the most challenging aspects of social marketing for Australian Businesses.

Regarding Deals, based on the info that I found, It looks like Facebook’s decision is motivated by internal changes and not by consumer insights:the forthcoming changes to the news feed and privacy settings would have altered the visibility of deals, potentially reducing their exposure as users choose to limit who can see various activities. These changes also include the phasing out of places in favour of location tagging”.

Will it give more room for Google + to launch geo location base system with the Android platform and its position on NFC?
Does also it mean that Groupon and the galaxy of group buying sites are due to a slow but certain death?

Marie Sornin


Success story + love story= cash.

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With 23%* of its users accessing Facebook from their mobile and “check-ins” sky rocketing since the launch of Facebook places, “Deals” (the next location based Facebook feature) is bound to be a commercial success.


            Group buying= success story


            Social & mobile= love story


            Facebook deals= cash


Deals” is part of Facebook payments which organizes the revenue stream of Facebook credits and seems to be set up for a transaction platform that could go well beyond social currency.


Already live in the USA and Europe since November 2010, it was initially scheduled for the 3rd week of March in Australia but has been pushed back to end of Q2 2011. Australian users can already register for deals but won’t have access to offers until later this year.


Although we don’t have data on the business generated by retailers which have implemented “Deals” overseas, we can clearly foresee value to encourage loyalty, up sell, and grow earned visibility.

“Deals” will be available for merchants which are already active within Facebook, so might you be a local business owner or a major national retailer, you must prepare now if you want to take advantage of “Deals” right when it gets released. Here is your roadmap!


1-      Build a strong Facebook fan base:
Facebook aims at launching deals with pages that have a minimum of 10 to 15K likes. If you are not there yet, you have a few months to boost your recruitment. This aim is imposed by Facebook for the only reason that without scale, companies shouldn’t expect many sales from “Deals”…
It also seems that a significant ad investment would help to be amongst the launch partners. I am thinking that those rules won’t apply to small businesses and that they will be able to manually create and push their local offers.


2-      Audit your places:
For now the data available in Facebook places is provided by Wikipedia and Factual + user generated. This doesn’t mean that all your stores have been created or that they are all accurately located and up to date. Facebook should be able to help sort this out for key retailers only. For others: convenient to know that the format used for Google maps is also accepted by Facebook.

3-      Create the right offers:
Offers should be aimed at:

a.       Generating more/ frequent visit to point of sales

b.      Product cross sell/ up sell

c.       Reward loyal customers

But they could also be a social tactic and create:

d.      talk ability

e.       High impact

To achieve this: better to create offers that are available nationally (can be supported by advertising, catalogues,…)

For those who have created offers in foursquare before, you have the advantage of already knowing what works best for you.


4-      Inform & train your staff:
Very important point, and often where traditional retailers struggle is to inform all stores and train the staff who is going to be redeeming the offers. The best way would be to inform your store managers and make them responsible for the deployment.


All that Facebook can tell you about “Deals” is here:


By the way, did anyone notice the quite release of “Questions”? have you tried it?


Marie Sornin

*source: Facebook- Mediabrands research- March 2011