PayLessNow is a unique daily deal site that’s attempting to offer a better solution for businesses that wish to acquire new customers through discount promotions. Traditional group buying sites partner with local businesses to give huge discounts of 50% or greater on the merchant’s products and services. These time-sensitive deals are broadcast to the publisher’s enormous email list of subscribers and they last only for a day or two. The result is an incredible influx of calls and voucher sales for the merchant with little return on their investment (ROI). Moreover, because the deal is short-lived the merchant and many other potential buyers lose the opportunity to benefit further. PayLessNow is introducing their own solution to address this missed opportunity and target customers locally via their new mobile applications.
Deals that are featured on PayLessNow will start off much like other group buying sites in that they will offer huge savings of 50% or more for customers. However, every day after that, the discount will be reduced by X percent until the third or fourth day at which the savings will level off. At that point, the deal will be offered at the same price for the next 30 days. These structured deals should provide great incentive for customers to purchase early while also improving the business owner’s ROI and maximizing the amount of exposure the business receives.
In addition to PayLessNow’s sliding scale deal structure, they’re launching iPhone and Android applications that tap into hyper-local markets. These mobile applications will not just notify users of deals in their city but they also permit users to indicate what types of deals interest them. Taken a step further, PayLessNow’s Push Card feature permits users to subscribe to categories of interest for which they can be alerted of nearby deals. For example, if a user is a golfer and happens to be walking or driving by a relevant merchant, the business owner could push a deal to the user’s mobile application that would then notify the user of the golf related deal.
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PayLessNow recently premiered in Chicago but they’re planning to expand rapidly into other U.S. cities. Their approach to each city is a bit different as well. Instead of targeting each city as a whole, they break up the city into sections to ensure that residents receive location-based offers from establishments within their immediate vacinity. This may give residents further incentive to seek out nearby merchants and buy locally rather than traveling outside of their neighborhood. Furthermore, this solution provides the nearby merchant with a leg up on his competitors that happen to be on other side of town. In addition, PayLessNow plans to offer not one, but up to three different deals per day per city area. These hyper-local deals will be scheduled so that merchants are not directly competing against one another and subscribers do not receive multiple deals for similar products and services.
Disclosure: PayLessNow has an ad on TM
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