Discount Club Partners With Charities

Share this content:
Subscription-based e-mail marketer, New York, will launch its Web site and officially begin building its database of e-mail addresses Jan. 31 with the help of local charities nationwide.

The goal of the site is to unite vendors who offer discounted products and services with Deal Club members who pay $20 a year to receive the offers via e-mail. Half of the membership fee goes to the charity from which the membership was purchased.

The model can be compared to coupon books in the offline world, according to Larry Deverett, GaZoom's president. Once a consumer becomes a member, he can choose to receive offers based on his particular interests.

GaZoom also will send offers for select items the member did not request information about. If there's a deal for a leather couch for $200, for example, the user may want to know about it," said Deverett. "If it's a phenomenal deal, we'll send it to everyone."

The site will send out deals that specific demographic group vendors will pay to reach. The cost to vendors will be 5 cents per e-mail.

This part of the business model could be problematic, according to Judy Andaloro, senior research analyst at AMR Research, Boston.

"If they're just using the information to send them [unwanted vendor offers], they will lose the customer," she said. "There has to be a way for consumers to control what they get."

There's a fine balance, Andaloro said, but consumers "may not know what they want until they see it."

The site has been signing vendors, ranging from local dry cleaners to major retailers, since December. More than 350 are on board.

This month, began its membership drive by partnering with local charities such as school groups and the Boy Scouts. It is also in discussions with the United Way.

To help spur sales and vendor participation, the site will conduct promotions in various cities. These efforts will include print, radio and cable television advertising as well as the hiring of agents to recruit local vendors and charities. Gazoom also plans to target large associations, and it will hold press events in New York on Jan. 31 and in San Francisco on Feb. 10.

To drive membership online, the site partnered with LinkShare to create an affiliate program with 1,000 sites. Affiliate members will receive $5 per club member registered.
Loading links....

Next Article in Data/Analytics

Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

Find out more here »

DMN's Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here