Constant Contact launches new daily deals site
Waltham-based Constant Contact, Inc. has launched a daily deals site it hopes will give local, small businesses more control over the process so they don't get slammed by one-time deal seekers.
On Tuesday, the company introduced SaveLocal, an online tool which it says addresses problems with the current daily deals model that put small merchants at financial and organizational risk.
"The current options demand that the merchant relinquish total control of the deal. They require steep revenue sharing and attract deal seekers rather than new, long-term customers," said Dave Gilbertson, vice president and general manager of the SaveLocal business unit in a written statement. He said that currently, merchants do not get contact information of buyers to turn them into repeat customers.
SaveLocal promises to give the merchant control of the deal, including discount amount, terms, timing, and how many coupons to sell. It also said that while many deal vendors typically take half of each coupon sold, SaveLocal allows merchants pay just $1, $2 or $3 per coupon purchased, depending on the value of the deal.
Constant Contact has been in acquisition mode as of late, having bought part of RatePoint Inc. of Needham in November 2011 for an unknown amount, which gave it access to several thousand new customers. In January, Constant Contact also bought CardStar Inc., a Boston-based developer of a mobile application that consolidates multiple brand loyalty cards into one digital bar code.
As part of its preparation to enter the deals space, Constant Contact recently acquired Chicago-based MobManager for an unknown amount.
With its launch of SaveLocal, Constant Contact enters a competitive local daily deals market, which includes not only heavyweights like Groupon and LivingSocial, but local startups including MyVici and Bozuko, as well as BuyWithMe, which was sold to Gilt Groupe in November, reportedly for a fraction of the $21 million it had raised in venture capital.
SaveLocal will be rolled out to customers in the United States beginning on Feb. 28, and to other small businesses and those outside the United States later in the year.
Courtesy of: Mass High Tech