These were the questions Partha Neog, the Co-Founder of TheDealsPoint asked himself before choosing to create a closed platform where verified users (usually from corporates) could claim certain privileges. The idea clicked and TheDealsPoint was born some two and a half years ago.
DealsPoint provides a platform which on one hand saves human resources department from the hassles of dealing with different brands wanting to push their product to corporate employees and on the other hand, it offers an easy way for brands to reach out to employees of different corporates.
Neog has recently closed deals with a few large corporates and has almost cracked another big one. His company has tied up with large corporates like HCL and Wipro to offer privileges to their employees.
“Everyone wants to reach out to corporate employees by offering benefits. It becomes difficult for the HR department to manage so many contracts,” said Neog. “We provide a white labeled solution for them to be able to manage employee benefits,” he adds.
Brands on the other hand can afford to give it for cheaper to a closed group of individuals with high purchasing power. “Its like seeding the brand in a peer group with high buying power,” he says.
How does it work?
Open Deals Vs Closed Deals
Timesdeal and Groupon are two of the large players in the deal space in India. They are also at the opposing ends of two different philosophies of the deal business. The former is a free deal site and the latter is a paid deal site.
While Timesdeal offers free deals to users without having to pay upfront for the discounted services, on Groupon, you have to pay upfront to buy a deal. But the two are similar in one respect. Both are open sites where anyone can sign up to avail a deal.
On the other hand, a closed deal site allows only verified users into the deals or privileges. For instance, it could be a large corporate running a privilege scheme for its employees. Aggregating these corporates means that the aggregator will have access to a large number of corporate employees. Brands also find it easier to deal with an aggregator than with individual human resources departments.
The deals on a closed group are usually of higher quality.
A successful example?
One of the successful examples of a closed deal and privileges company is Next Jump. The company handles rewards and loyalty programs for a large number of Fortune 500 companies.