Facebook Launches Social Deals to Compete with Groupon!

Facebook Lauches Deals to Compete with Groupons

While Facebook local deals have been in the works for some time, Facebook social deals are brand new. There is already a huge buzz surrounding this new feature release. Imagine all the power of Facebook, all the interconnectivity, all the viral components working together to create unheard of group deal potential! That is what we are talking about here folks.

Facebook Launches Social Deals
Facebook Launches Social Deals

So let’s talk a little bit about how this works because there are some distinctions between what Facebook is trying to accomplish and what companies like Groupon and Living Social are doing. You may want to consider this as a viable local social media advertising platform.

Check-In Deals Stay the Same

Right now you can check in to a Facebook Places location through Facebook and unlock specific deals. This is similar to how FourSquare deals work. When you go to your favorite restaurant, you log on to your phone, check-in and if they have a deal set up, you can unlock it and use it. This part will not be affected.

Social Deals are Different

The new social deals work differently than the check-in deals. Social arrangements are more geared towards events and experienced. So for instance, an excellent social agreement would be a concert or beer festival. The most exciting part about these social deals is that you cannot pay for them with your regular credit card, you need to use Facebook Credits. Yep, Facebook Credits. Here is a quote on this from our friends at Mashable:

“By contrast, Facebook’s new Social Deals, like Groupon or LivingSocial, must be purchased upfront using money or Facebook Credits (the first use for real-world products/services). You buy a voucher that is then redeemed offline.”

As of right now, this new feature is only available in a few select areas, to a few select companies.
Areas Where Facebook Social Deals are now Offered

  • Atlanta
  • Austin
  • Dallas
  • San Diego
  • San Francisco

Companies Allowed to Run the First Facebook Social Deals

  • Gilt City
  • Home Run
  • FreshGuide
  • PoweredByTippr
  • KGB
  • Plumdistrict
  • Zozi
  • OpenTable
  • ReachLocal/DealOn
  • Viagogo
  • aDealio

Why Could this be Better Than Groupon?

Let’s get one thing straight. Facebook has stated that they are not focusing on group deals for things like dental work, laser surgery, etc. They are focused on group deals for inherently social events. This allows the new feature to play into the social nature of the site. We’ve heard time and time again that high school and college parties get way out of hand with Facebook invites. Imagine this happening for your business!

The best part about these group deals is that they can support future residual marketing. What do I mean by that? You run a social arrangement. But a significant focus of the social deal is the information offered on your Facebook page. So, when you run this social deal, you are directing people towards your page, and then people turn into fans of your page. Now next time you run a sale or an online promotion you can reach out to this new community for free to promote it. Pretty cool right?

Have a question or comment about the Facebook social deals? Add it below!

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