I understand SCVNGR's thought process behind this and appreciate the fact they are going after a major inherent flaw of other daily deal sites (not generating repeat customers).
However, I think SCVNGR will find they have the same problem. Even though they claim research shows that a customer who visits an establishment three times is a "regular" this doesn't take into account that customer is used to severely discounted prices. When someone is used to paying 75% off, I think this is a huge barrier to overcome in order to get them to continuously pay full price.
1 comment
[ 5.9 ms ] story [ 16.2 ms ] threadHowever, I think SCVNGR will find they have the same problem. Even though they claim research shows that a customer who visits an establishment three times is a "regular" this doesn't take into account that customer is used to severely discounted prices. When someone is used to paying 75% off, I think this is a huge barrier to overcome in order to get them to continuously pay full price.