Late Monday, Facebook announced a limited-release launch of Facebook Deals, which is a group-based local coupon deals that will rival Groupon and LivingSocial. Facebook Deals launches a trial balloon run on Tuesday in five American cities: Atlanta, Austin, Dallas, San Diego and San Francisco.
This is big news. If Facebook Deals takes off–and most insiders think it will–it offers tremendous new ways for your business to create more leads and sales by harnessing the power of Facebook.
Facebook Deals will offer discounts for consumer activities usually involving groups in a social environment, such as movie tickets, restaurant prices, concert tickets, etc. With Facebook Deals, you can purchase local deals using your credit card or Facebook credits. You can print out a voucher that you use to redeem your deal.
As with everything else on Facebook, you’ll be able to ‘Like’ or share your Facebook Deals through your News Feed. You can post to your News Feed to alert your friends to a new Facebook Deal. It’s still unknown if Facebook Deals will be similar to Groupon and Living Social where a deal has to get a certain number of buyers for the discount to go into effect.
Besides appearing in your News Feed, you will be able to find a link to deals in the left hand navigation column of the Facebook pages for individual local businesses. You will also have access to a Deals page for your News Feed and Facebook profile page via a deals link in the left hand navigation column of your Facebook dashboard. You can also sign up for email updates here.
But the real question is: how is Facebook Deals different from Groupon or LivingSocial? And what can Facebook Deals do for your business that Groupon can’t?
There are 3 big reasons why Facebook Deals offers huge potential for your business.
1. Facebook Deals won’t take a substantial percentage of the profits generated by your coupon deals
2. Facebook Deals offers your business far more exposure than Groupon or LivingSocial
3. Facebook Deals is much better for group activities and can generate more leads and sales for your business more quickly
Let’s take a look in-depth at each of the 3 reasons why Facebook Deals could really help your business grow.
1. It is expected that Facebook Deals will NOT TAKE A PERCENTAGE OF THE DEAL YOUR BUSINESS OFFERS THROUGH FACEBOOK! Compare that with Groupon, which takes as much as 50% of the profits generated by each coupon it sells. You might be wondering, what’s the catch? Why would Facebook create Facebook Deals if it isn’t going to take a percentage of the deals that businesses offer on its site?
The answer is simple and legitimate. Facebook has been undergoing many changes in the last 8-12 months. Each new development is part of an on-going movement to bring more and more eyeballs to Facebook for longer and longer periods of time. Facebook is trying to become much more than just a social networking site. Facebook wants to be the conduit through which people experience the Internet and share information about their lives.
In other words, Facebook sees long-term potential in recreating a comprehensive community on its own site. So you needn’t worry that Facebook Deals is a scam because it isn’t taking a substantial percentage of the coupon profits.
2. Remember, there are over 600 million people now using Facebook worldwide and studies have predicted that by 2020 the majority of the world’s population will be using Facebook! Facebook has a large audience that should prove very enticing for businesses looking to attract new customers. It’s quite simple, really. Facebook can offer your business far greater exposure and a more immediate and personalized customer experience than Groupon ever could.
3. Facebook is claiming that Facebook Deals is going to offer deals that are far more alluring to its users. “You won’t get your legs waxed with friends,” Emily White, Facebook’s director of local operations, told The Financial Times in March. “You dine out, you go to concerts, and you do outdoor activities. We want to make sure those experiences are maximized.”
Facebook now plays a central role in its users’ social lives. When something new happens to a friend– like an engagement or a birthday or a promotion at work– we learn about on Facebook. As a result, if you can get existing clients to use Facebook Deals, you’ll create more leads more quickly than you could ever imagine. Facebook Deals offers your business the chance to be part of a group activity that can truly transform your business.
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