About two weeks ago, I wrote a post on my predictions for how daily deal sites will evolve over 2011 and beyond. At the end of that post, I asked about how location-based services may play a role in defining how daily deal sites continue to evolve. So here we are at the next post where I’ll make my predictions about how LBS will be more integrated with daily deal sites than ever before, and why I believe that Facebook Places Deals (launched in November 2010) is the future of daily deal sites.
In the last post, I commented on the impact of mobile on daily deal sites in that it will only become more common as people would rather have coupons constantly available at their fingertips rather than having to print them at home. LBS sites are at an advantage here because they primarily function as mobile applications, which can make their transition to daily deals even easier. As the LBS market stands now, some of the major players (FourSquare, Gowalla, Facebook Places etc.) already offer coupons to their users for certain businesses as a reward for checking in or becoming the mayor; but what if these sites offered these deals consistently every day and for a much larger variety of places?
Tapping into the success that comes with offering coupons to major national chains as Groupon, Facebook Places, and Foursquare all demonstrated with Gap last year, could be the next step for daily deal sites to merge with location-based services and further integrate with mobile. We can see from the chart below that when Groupon partnered with Gap in August, there was a noticeable spike in site traffic.
If LBS apps like Foursquare could capitalize on a similar model of offering regular deals with major retailers, just for having users check-in, it could be a huge boon for the LBS industry as well as for smaller retailers who would benefit from having people check-in to their brick and mortar shops. This then begs the question, would Groupon benefit from adding LBS-style check-in functionality? As of now, that remains to be seen.
On the other hand, to be able to compete in the daily deal space with the likes of Groupon and Livingsocial, Foursquare would probably have to hire a huge amount of sales people, but it could be worth it in the long run if it turns out that people respond well to the check-in/coupon integration. The only thing that we can be sure of right now is that daily deal sites and LBS apps aren’t going anywhere in the near future, and we’ll have to keep an eye on both industries as they develop and grow.
Would you be more likely to take your daily deal needs to an LBS app like Foursquare if such a feature was offered? Let us know in the comments!
Jared is currently the Associate Digital Marketing Manager at Compete (Millward Brown Digital). He is a graduate of Northeastern University, having achieved his B.A. in Communication Studies. If you like what you read, you can connect with him on Google+, Twitter, or on LinkedIn.