Groupon and Living Social offer businesses a great way to get new customers in the door. That said, there are arguments against using one of the daily deal sites. The main argument being that customers who purchase a businesses goods or service at huge discounts will never pay full price; or by offering deep discounts, the value or perceived value of a brand declines. The second argument is why major brands avoid the daily deal services. That is not to say that these brands don’t offer deals though. Rather, they use novel services to offer deals.
Take the case of Hotwire.com. Hotels generally have unsold, unoccupied rooms. However, in an effort to preserve their brand value, they do not offer services or discounts through the various daily deal sites. Rather, they take to Hotwire, and similar services. Hotwire, and others, require that customers book and pay before revealing the specific details, thus preserving the brand value. This unique service has been, thus far, confined to the travel industry. However, there is a One Spark Creator that is bringing this model to the food and beverage industry: Phyrefly.
Phyrefly is pretty simple to explain. It is Hotwire for restaurants and bars. It’s as simple as that.
As a yield management and marketing tool for restaurants, we help to fill empty tables and cover overhead in a more effective manner while protecting the restaurant’s unique brand identity. The user is able to search by neighborhood, type of cuisine, price point, and member rating. Offers are then generated based on the criteria selected and the name of the restaurant is revealed once an offer is accepted.1
Phyrefly is gearing up to launch in Charleston, SC and Charlotte, NC sometime later this year.