New online start-up clickO Deals is upping the ante on daily deal sites by offering online retailers a smart, yet simple and affordable solution to drive traffic to their sites.
clickO Deals is an online portal that enables retailers to put up specials for any length of time – whether it is an hour or a week, basically letting you create your own Groupon style deals.
Some of the retailers they have already worked with include well-known brands Jeans West, Bonds, Booktopia , Bevilles Jewellers and Tool HQ.
What problem is clickO Deals looking to solve?
clickO Deals was founded by ecommerce veteran Mark Freidin, the former Chief Operations Officer of Catch of the Day, and a prime mover in securing $80 million in funding for them.
“In creating clickO Deals we wanted to create a business model that avoids two of the biggest challenges facing some of my favourite online business models – daily deal/flash sale sites and cyber Monday Frenzy type sites,” he shared.
“The first is the ongoing problem of managing a growing inventory – a huge problem for daily deal sites – and the second is how to keep your database engaged on a regular basis without losing them,” Freidin explained.
“I love the frenzy model but the problem I see is that there is too much of a lag between events and in my language that means the relevancy of the database lessens between frenzy events.”
“In the tight and competitive online space you need to be flexible, nimble and quick and offer what your customer needs,” he pointed out.
What exactly does clickO Deals have to offer?
Freidin remarked that the premise behind clickO Deals is to offer hourly, daily, weekly flash sales or even monthly events “and we don’t have to hold any stock”.
“We effectively offer retailers their own store on our site. We promote to our huge database and retailers get to clear stock and build their database,” he explained, “The best part is that the retailer gets to complete the final transaction and sale on its website.”
“We do the filtering and only push highly qualified leads through to retailer’s sites as we have effectively managed the conversion funnel for the retailers.”
“The flexibility of our platform also enables us to offer frenzy type sales and affiliate click throughs as well. I guess you could call us a marketplace or affiliate site too,” he added.
Freidin disclosed that with the brands that have already used clickO Deals, they are seeing conversion rates of 3.5 per cent to 19 per cent. “The investment by these brands is minimal but the returns are considerable.”
He further pointed out that a key factor in signing onto an event on clickO Deals is that it only accepts the very best prices from retailers.
“Otherwise our platform loses its competitive edge. We want our members to feel that they are always getting the very best deal when they visit clickO Deals.”
For retailers, clickO Deals offers a fixed rate set up fee for an event, cost per click or a commission on sales model.