Facebook Announces “Facebook Deals” in 5 Cities

Companies have been making efforts to promote their products or services on Facebook to its user base of more than 500 million people.Below are some of the most popular ways companies interact with their customers and create a larger user base on their Facebook Pages:

• Interact with existing customers, potential customers or fans and take their feedback very seriously to improve the products or services.
• Make customized applications (i.e. quiz, games etc.) for their users to engage their fans, who afterwards might become customers.
• Usethe Facebook platform to increase sales revenue from the current customer base and alsogenerate more customers by offering exciting deals.

Facebook has recently announced a service by the name of “Facebook Deals”. The service would initially be tested in 5 different cities first; Atlanta, Austin, Dallas, San Diego and San Francisco. Facebook with its new service is concentrating more towards group activities, instead of individual deals, for example, deals on concert tickets or deals on baseball game tickets.

With the announcement of Facebook Deals,”Groupon” and “Livingsocial” now have a strong competitor offering deals to customers. A largefactor, which might provide a boost to “Facebook Deals”, is that users will be able to use the “Facebook Credits” to purchase deals. Usually users were only able to buy virtual products for games (e.g. user can buy a cow in Farmville through Facebook Credits). This aspect has really given a very different perspective to Facebook Deals and might prove to be just the push “Deals” needs to get started in the market.

After the test run in the above mentioned 5 cities for Facebook Deals, it will become easier to comment on the future of this enhancement by Facebook. We wait for more news on this and looking forward for user feedback for Facebook Deals.