Today, Facebook deals went live in 5 U.S. cities including Atlanta, Austin, Dallas, San Diego and San Francisco. In November, Facebook announced “Facebook Deals”, and in March, the first release was sent out in Atlanta. Now, that original release is titled “Check-in Deals” (which has 15,000 likes) and the new deals site is live.
Similar to how Groupon operates, local businesses offer group discount rates to groups or parties. For example, “25% off your dinner for parties of 6 or more”. Users can buy in to these deals by using their credit card or using Facebook credits. This move by Facebook is already being called the “Groupon killer” as it’s expected to take significant market share from them.
“This helps businesses in 2 ways. Customer loyalty and social distribution” says Scott Witwer, Chief Experience Officer at WebiMax.
“This builds Customer Loyalty because users who check-in to a place more than a specified number of times can get a reward incentive. Social Distribution is built since as customers check-in and redeem deals, stories are published to their profile about that deal. The result is that their friends will see when they redeem deals and in turn help spread awareness about any promotions businesses are running”.
Users are able to “like” specific deals, and share them in their news feeds. When a deal is bought, it will also be posted to their wall so that others can see what deals are being taken advantage of by people they know. Furthermore, users can sign up for e-mail alerts on what deals are new in the area.
Facebook is now entering the local deals business, much like how Groupon.com works. In November 2010, social media titan Facebook announced “Facebook Deals”. That has evolved over the past few months and in recent announcements, they have begun advertising just what exactly they intend to do. The fundamentals behind this new initiative are that local businesses send Facebook coupons for groups to participate in. This can include, for example, “25% off your dinner for parties of 6 or more”. This new addition is making Groupon.com a bit nervous as Facebook aims to accomplish exactly what Groupon did that rapidly brought them to fame.
In an official Facebook wall post, dated yesterday (Wednesday, March 16, 2011), they said “We’re working to make it easier to find fun things to do with your friends and connect with local businesses.”
They’ve added a tab titled “Deals”, which briefly describes the idea, and where the service is available as of right now. Currently, it is only available in Atlanta, Austin, Dallas, San Diego and San Francisco. Facebook has not clearly stated when it becomes available in other major U.S. cities, only “coming soon”.
It seems as though news breaks every day that confirms the statements of Kenneth C. Wisnefski, Founder and CEO of WebiMax that “social media is emerging as the new era of marketing, beginning to replace traditional marketing tactics”. Companies that haven’t contacted an SEO company that also specializes in Social Media Campaigns perhaps should.
“Much of WebiMax’s success is a result of our ability to continuously evaluate the internet marketing industry (since it is constantly changing and evolving) and find ways to adapt and stay ‘one step ahead’ of the curve’ ”, says Wisnefski.
Businesses may be asking themselves “How can Facebook Deals help me”?
Scott Witwer, Chief Experience Office at WebiMax discusses this question:
“This helps businesses in 2 ways. Customer loyalty and social distribution:”