It’s no secret, the Internet is saturated with great deals on electronics for customers. Retailers like NewEgg, Amazon and others have pushed prices so low, it’s an increasingly difficult market to compete in. Websites like Dealnews that aggregate all of these electronics deals and find the lowest prices have become extremely popular, as they offer overwhelmed shoppers a way to parse the never-ending torrent of promotional deals. While sites like Dealnews offer value by centralizing a massive amount of sale information into a comprehensive and searchable site, the “daily deals” model of sites like Groupon tackle the same problem with an opposite strategy. Daily deals websites are the inverse of aggregators. Instead of trying to offer consumers every deal they could potentially want, they just offer them a few, delivered to a list of consumers daily. Because these sites work directly with the retailer offering the deals, they’re able to offer better sales than you might find on an aggregator site. Also, these deals are exclusive, making daily deals a closed loop that customers must engage with in order to take advantage of the savings offered. If you want to market to truly engaged and interested customers, a daily deals website can help you by offering your customers the best electronic deal possible.
So why would consumers use a daily deal website to find the best electronic deal possible when they could be using any of these other options? The secret is that, daily deal websites shine when marketing a niche product, as they are geared toward developing a group of engaged subscribers looking for a specific type of bargain, and despite mass appeal, electronics can be marketed as a niche product. If you think of electronics in relation to other goods and services being marketed online, they are rather specific.
For one, electronics are generally more expensive than many of the products you’ll find on most daily deal sites. This means that consumers in the market for electronics are generally less inclined to make snap decisions to buy as opposed to something like a restaurant gift certificate. However, this same hesitation to buy also means that they’re more educated in the market, usually having done some research with the knowledge that they’re planning to buy a particular type of electronics product. This makes them much better at recognizing great deals when they do come up, and more likely to take advantage of them, knowing they’re not likely to see a similar deal in the near future.
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In addition to this, the electronics market online is fairly standardized, meaning that similar products are usually priced similarly as well. One particular model of Canon camera is going to be roughly the same price across a variety of outlets. This means that the best electronic deal is often only a few dollars less than the competition. This is where marketing to an engaged and educated audience pays off. If someone is interested in a Canon camera that they’ve searched for on Google, and they know that the retailers selling it are asking a variety of price points between $126 and $134, then you offering a deal of $119 for the same camera is very attractive. It seems like a small price difference, only 5.6% off, but because it’s lower than the lowest price out there, it can command a lot of attention from those in the market for that particular product.