All businesses offer discounts to their customers. Online group discount companies like Groupon help retailers offer the right deal to the right customers, thereby increasing their conversions. Mapping the customers to the deals is key to achieve higher conversions, and these companies leverage data to match the customers with the deals.

Here are a few pointers that are used by online deals and discount companies to map the deals to their customers.

Understanding the customer

Understanding the demographics of the customer is the first step. This includes understanding the age, gender, sex, income, location and preferences of the customer, and recommending the right products to them.

Understanding customer’s mood and situation

If companies are able to understand the situation and mood of the customer in real time, and suggest appropriate products with discounts, the probability of conversion increases. This is a complex process and should not be done without having a complete view of the situation.

Understanding customer’s attitude

Not all customers within the same segment respond in the same manner. Some value price, others value products. Some prefer deals from local outlets, while others like to travel distances to get the best deal. It’s important to segment customers based on their attitude, apart from their demographic and behavioral data points.

Understanding customer’s psychology

It is necessary to understand ways in which customers are likely to get offended, and companies should take extreme care to avoid those situations. This includes carefully offering deals or products that are confidential in nature, avoiding situations where customers may feel that they took a wrong deal, ensuring that the deals are easily redeemable etc.

Respecting customer’s privacy

Knowing too much about the customer, and making it explicit in the form of deals that are offered can get extremely uncomfortable to the customers and disastrous to the business. Deals offered to the customers should be well balanced such that nobody should be able to predict things about your customers by just looking at the deals that are offered to them.

Validating customer’s choices

A provision should be made within the models that map deals with customers to continuously validate the choices of the customers and update the models, such that the customers can be appropriately bucketed into the appropriate segments. This process should be a continuous process, as the customers can fall into different segments frequently depending on the life situations and circumstances.