preview

Do Social Deal Sites Really Work?

Good Essays

Case Study

EXPERIENCE

HBr.orG

A theme park operator considers whether the boost in ticket sales is worth the trouble. by Marco Bertini, Luc Wathieu, Betsy Page Sigman, and Michael I. Norton

The Experts

Gideon Lask is the founder of BuyaPowa, a uK-based social commerce business.

Do Social Deal Sites Really Work? t he sales reps from DailyDilly had just finished their rollicking video presentation, and the laughter in the meeting room was starting to subside. Ruth Davison, the marketing director of Flanagan Theme Parks, was still smiling when she finally spoke. “I’m thoroughly impressed,” she said. “This would give us the marketing capabilities we’ve always wanted.” Will Eastman, Flanagan’s operations director, was …show more content…

Allie knew she could make Flanagan better. She had already helped an international hotel chain turn around its service reputation and improve guest satisfaction—she was becoming her firm’s go-to person for that kind of thing. Allie
140 Harvard Business Review May 2012

Buckle In

was painstakingly attentive to detail and preternaturally decisive, which is exactly what Roddy wanted. “Rule with an iron fist,” he’d told her. Ruth pulled onto the highway. “I noticed you weren’t laughing during the video this morning,” she said. “Didn’t you think that senior citizen group on our zip line was funny?” “The video glossed over the pitfalls of daily deals,” Allie replied, knowing she sounded humorless. “There are ample case studies showing that people who buy from sites like DailyDilly are the worst kind of customers: ones with no loyalty. They’re like a flash mob of coupon clippers. They overburden merchants, create shortages, annoy the staff, and erode the experience for other customers.” She paused. “Where are we going, by the way?” Just then Ruth exited at the sign for Coral Wonderland, another Flanagan park. She pulled up to a service entrance, showed her ID, and parked next to a high wall that separated this area from the one that customers see. “Did you notice the river in this park on your tour?” she asked, lowering her window. Allie nodded. “Well, there’s a little canal down there,” Ruth said, pointing to a glimmer of water under a mass of pipes and

Get Access