how to run a profitable business starting from ideas

Simone Lovati

Senior consultant in business modelling and strategies.
Partner and co-foundator of ADVB Strategic Minds (since 1999), a strategy firm with a worldwide network of 400+ consultants in strategy and marketing
 

Do daily deal sites benefit local businesses?

In my opinion daily deal sites, like Group-on, are an "acquisition machines" and maybe every local business has to try them.

If the CAC (client acquisition cost) is less than the CAC of other acquisition tactics, i think that daily deals can be a right investment, at 2 conditions:
1. Local businesses have not to reduce the customer experience to still have a markup in the deals
2. They have to see daily deals like a chance to give a test to their services, so they have to deliver their best effort, not a low cost version of their services

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