The Madison Ave. spa Wellpath in New York strived to attract loyal customers by running discounts on the “deal-of-the-day” Web sites. Wellpath spa provides women who look for health and beauty that are gentle and highly effective to become better and more beautiful looking women. Their service includes Zerona laser treatment, radio frequency using Velashape and Carboxytheraphy etc. Wellpath cooperated with the biggest dealmaker, Groupon, making better daily deals on Website to attract and intensify the number of customers to the place. This drew women from places to benefit from coupons to get their wrinkles removed but only temporarily. This marketing instantly draws and catches the eyes of customers to come to the place once but does not make them their loyalty.
“The consumers were being told: You will never pay full price again.The merchants were hearing: You are going to get new customers who will stick around and pay full price. Disappointment was inevitable.”
From my point of view, since merchants seem to expect to prosper afterward their having invited customers for once, they should be satisfied to have benefits of spreading awareness of their brand because the input for this output is undoubtedly high and risky.