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Facebook Deals is still in its early days yet. However, I have no doubt that Facebook Deals is the perfect shot in the arm for the stagnating coupon/ deal industry. Though it’s being touted as a new competitor to Groupon and LivingSocial, I don’t really think that’s the case because Facebook Deals is in a league of its own. Though it’s currently restricted to users living in Atlanta. Austin, Texas, Dallas, San Diego and San Francisco, I believe it’s a matter of time before Facebook Deals becomes the next big global phenomenon in social media.
Last November, I wrote a piece introducing Facebook Deals and how it can affect your business. Facebook has maintained its envious growth rate since then and with more than 500 million active users, it’s by far the best place to launch a deal service. I’ve used Groupon and several of its lesser known clones for a while now. However, I strongly believe Facebook Deals is all set to the revolutionize the coupon/ deal industry for good. Here’s why.
Big Daddy of all social networks
The golden rule of marketing states the more people you can reach, the better results your marketing campaign can offer. Facebook is the Big Daddy of all social networks and it offers a monumental opportunity for businesses to offer huge discounts in the same fashion as sites like Groupon.
While Groupon started from scratch, the ground work for Facebook Deals has already been done in the last couple of years.
The Personal Touch
Groupon thrived because it targeted users’ preferences. I’d expect Facebook to go a step further and beat Groupon at its own game. After all, Facebook offers the massive advantage of serving as a primary portal through which friends and family members communicate. I have no doubt the social interaction model will impart a competitive edge to Facebook deals over its rivals.
Familiarity
There is almost a zero learning curve to use Facebook Deals. Since it’s a service within Facebook, the user interface is familiar. Users can access these deals through a button on their Facebook page. Browsing through the deals, users can either “like” or share offers with their network, which will also show up in their news feeds.
Facebook Credits
Facebook Deals is not another run-of-the-mill coupon service. It’s thoughtfully designed and offers several innovative features such as the ability to pay using Facebook Credits. Users can pay with a credit card, PayPal or for the first time, with virtual currency using Facebook Credits. The virtual currency is good to obtain a voucher that is then used to buy the deal.
In my opinion, Facebook Deals is yet another step towards building a rich ecosystem of social media and online payment to create a virtual economy that may revolutionize the coupon industry for good.
Have you used Facebook Deals as yet? Do you think it’s better or worse than Groupon? Do you believe it would be the next big thing in social media? Please share your opinion by leaving a comment below this post.
Hi Doug,
I have not used Facebook Deals or Groupon, but I would argue this is not the next big thing in social media. People want deals and that is what Groupon, LivingSocial and Facebook Deals provide. I believe the next big thing in social media is a true business presence within social media. Much more than just Pages or deals. Until than, social networks will not be fully monetized.
The next big thing in social media Michael is you and I. We are the engine of social media. Without the “social” component, which is us the users of the platforms, the “media” aspect of social media will not thrive. All Facebook and the other competition in the coupon category and so many other niche categories are doing is to further engage our experiences on these platforms. Whether they are big or not totally depends, back to use again, you and I.
I agree that this will revolutionize the online coupon industry – can’t argue with that 700 million base. I started a week long series of blog posts on online couponing today – you will find it at http://www.406strategies.com/2011/05/02/all-you-ever-wanted-to-know-about-coupon-marketing/ if you are interested.
Once they open up the regions, I’m all over this. How can I successfully change my address to San Diego? I’ll be checking into this more, thanks.
The next big thing will be something like Bigcrumb (MyCrumb.net), where the user can combine discounts/cash back and take advantage of some of the advertising revenue. When the social makeup of programs like this become stronger watch out!!
interesting) thanks)
nice article. Thanks.
[…]The golden rule of marketing states the more people you can reach[…]
Truth!
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