Does Groupon Work? Marketing Advice To Get The Most From Coupon Sites
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We get asked a question by a lot of our small business clients…. does Groupon work? Groupon and similar coupon sites have opened up an entirely new avenue for businesses to promote themselves, but like all new things, perhaps the reality wasn’t as good as the hype. Or is it? The truth is that its complicated.
Coupon site promotions are looked at in the wrong way by most small businesses. If you go into them with the right strategy they can do wonders. With the wrong strategy your business will do nothing more than give away you services for 1/4th the normal price and spend all your time catering to these customers.
If you are not familiar with how the process works, at least a 50% discount is needed and you will be splitting the money that comes in with the coupon company.
That means if you offer a $40 deal for $20 you are only going to be taking in $10. That is not end of the world if it brings in repeat customers, but you need to have a plan to capitalize on new people coming to your business.
Here is what you need to know to get an effective Groupon or Coupon site experience.
Tailor your offering so that there is more than meets the eye
I have used several Groupon’s and the business that got the most money out of me are the ones that had something else to offer once you were there that they could make money off. If you average meal for 2 is $50, offer a $30 Gift card for $15 dollars and limit one per table or one per couple.
This way, you still get them in the restaurant but you are missing out on less. The same applies for services. Limit your deal so that they will have to come back for more.
If your service is good, and the they are not coupon crazies, you will do well. A coupon crazy is someone who bounces from place to place waiting for coupons and will never become loyal to a service.
Make sure to have a follow up offer to get them back in
People think of their first experience differently when they are using a deal purchase on these sites. You need to get them to come back in a second time on your own terms in order to really seal the deal. Offer them a revisit offer to get them back a second time. Your retention rate will sky rocket.
1. Ask for the data
You should be able to get the subscriber data of anyone that purchased your deal so that you can market to them with email marketing. If not, you are missing out on a huge revenue boost.
2. Ask for a better split
Depending on your offer and how well they think it will sell they will offer you a better split than 50/50. It doesn’t hurt to try.
3. Mix it up
The days of only having one option are over. While Groupon is still the 400 pound guerilla you have a lot of options. Sometimes local niche sites are better suited for your offering.
4. Be your own coupon site
Take a cue from casino’s and offer people that haven’t been back in a while a special deal. By going direct to people that have already used your products or services you skip having to deal with giving a commission to a coupon site. It can be just as effective.
5. Cap the deal
If it is your first rodeo, cap the deal to a certain number of buyers. You may have given away more than your needed to. Do a smaller test run before having 1500 people buy something you are only going to make 25% on.
6. Getting the most
There is a lot to think about when you are considering using Groupon like site to do your marketing. A knowledgeable marketing consultant can help you avoid costly mistakes and get the most out of your marketing. Call us at 321-281-8353 for a free consultation.