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The Daily Deal – an Effective Way to Damage Your Brand and Deplete Your Profit

Connor Keppel

Daily deals – a temptation that many salons have and will give into. It seems like an easy and effective way to get new clients through the door. Thousands of people will receive an email with your salon and services in it – it has to work right? Think about it. You’re increasing awareness, and once you woo the new clients they will come back; making you money in the long run.

Then why, as a marketing manager, would I put my reputation on the line and say that daily deals are the single most damaging marketing tactic you will ever undertake for your salon.

Here’s the reality:

1. It cheapens your image

When I see anything from restaurants and adventure centres to spas and salons pushing an offer on a daily deals site I think “They must be stuck for cash.” And if you give that impression, you’re creating the perception that your salon must not be good enough to keep regular clients coming back i.e. daily deals are perceived as a last resort. Who wants to go to a salon like that?

2. There’s no long-term benefit

Don’t be fooled into thinking that the new clients that come through your door will ever be back. There’s a function on Phorest’s Salon Software to process vouchers. Here’s what the information tells us – only 3% of clients who use a daily deal voucher in your salon will ever come back. 3%…

In terms of awareness, it doesn’t work either. Daily deals are daily. If you think people will remember your salon they won’t. They’ll just get another salon’s deal into their inbox tomorrow and the day after.

3. Only the daily deal companies benefit Very often salons will make no profit; if not actually lose money. What you are actually doing is:

– Pleasing only clients who are all about price not quality. They don’t want your services specifically, they just want a bargain. While it may be your salon this time, when they need another colouring or treatment, they’ll just grab the next deal that comes their way.

– Annoying potential clients and turning them off your salon. How? By limiting the hours, days etc. they can use it. They feel duped when all you’re trying to do is keep your premium hours open for full paying clients. They won’t see it that way. So you could open it for all hours/days then, right?

– WRONG! This is even worse. All you’re doing then is turning away regular clients to fill slots with people who won’t make you money or ever come back. Now you’ve annoyed your regular clients and the new ones will never come back. Your nearest competitor has just benefited greatly from your daily deal by getting your best clients without having to lift a finger or click a mouse.

4. Affects Customer Service Levels and Customer Satisfaction

Loyal clients will also hear about the daily deals and will either buy one of these themselves (reducing even your normal revenue) or worse; will be left completely disillusioned that their loyalty is not being rewarded.

From a customer service point-of-view, clients can often also get bad customer service levels. The salon can end up having full days of these voucher deals; it will feel manically busy in the salon with staff working overtime to clear the backlog, reducing the effort that goes into each individual client. And worst of all when you check the till at the end of the day, it will feel like it was all for nothing.

Daily deals are a lose-lose no matter what way you think about it. The only people who benefit are the companies who push them.

What’s your view on daily deals?

Connor Keppel is the Marketing Manager at Phorest. You can contact Connor on 0207 100 9290 (UK) or 01 8747800 (Irl) or by email: