Nothing appeals more to consumers than getting more for less. Deals websites not only offer discounts, but also an array of classy options, giving consumers the opportunity to experience the best at lower prices.
In conversation with exchange4media, Anisha Singh, CEO and Founder, MyDala explains the functioning of deals websites and how consumers relate to them.
What are the major challenges faced by a deals website?
Deals websites had been pushing the deal a day concept, which was great to look at but it was soon realised that users were logging in from all over India and from different parts of a city. A person in south Mumbai wouldn’t necessarily be excited about a deal that was in Bandra because of the travel time to Bandra. Also, the merchant would only get a one-time deal junkie. The challenge was to build a great analytics that matched the right user (based on their buying pattern and location) with the right merchant, so that the merchant would get a long-term customer. We now have a robust backend proprietary analytics system that does that not just for MyDala, but for a lot of telcos as well.
Which sector deals are seen picking up the most on deals websites such as MyDala?
Health & beauty and restaurants are the major sectors that are very popular with MyDala users. Summer time travel is also an extremely popular sector.
Please elaborate on your business structure.
We started MyDala as a group buying site catering to getting best of deals for users, however, in the first six months it also became clear to us that the main need was on the merchant or business side in terms of marketing. MyDala is essentially a merchant marketing platform that helps businesses connect with the right set of consumers. The more we talked to our merchants, we realised that a business such as a small restaurant, salon, someone who bakes goods, or any business that provides some service had very limited means to market themselves without dishing out upfront marketing dollars. Over time we developed MyDala into a marketing platform that helps all businesses, especially local businesses, market themselves via social media, mobile and MyDala’s website. We help businesses build brand awareness and drive conversions to them. Now, with over a 100,000+ retail businesses having used us as a platform in over 120 cities in India, we know that we are fulfilling a need.
How do you devise your marketing strategy and brand communication?
When we started, we had limited money and so we knew that in order to grow we needed our customers to become our champions and that word of mouth advertising was going to be our asset. For the first two years of MyDala, our users were our promoters. We also looked at alliances that we could leverage to grow. At MyDala, the logic was basic business logic – if your acquisition cost outweighed the LTV on a customer, it didn’t make any business sense. So, we got our alliance network to grow and reach users. Currently, we reach 25 million unique users on a daily basis via our network.
Where do you see MyDala five years from now?
MyDala is the leading player in mobile coupons with presence in over 120 cities and over a 100,000+ merchants showcased. Five years from now, we see MyDala as the de facto provider of coupons and loyalty with the most extensive merchant base.