In this article you will learn how to get the most out of implementing a Groupon deal. Use these tips to improve the effectiveness of Groupon for your small business.
Daily Deals And Groupon
Groupon and daily deal sites like it have been around for some time now and have grown in popularity since coming on the scene back in 2008. They offer users unbeatable deals on products and local adventures including vacation packages, spas and restaurants, just to name a few. Groupon is a global, publicly traded company that has worked with more than 30,000 businesses, a large portion of them being small businesses. According to its website, Groupon sells things that its employees would want to buy, follows a “No BS” mentality, and aims to provide unbeatable customer service.
Groupon And Your Small Business
Groupon attracts people to your business by offering potential new customers a less expensive way to experience your product or service. For example, a restaurant might offer a $50 gift card for $25 or you might sell a spa treatment for $50 instead of $150. Then Groupon collects a 50% commission of the coupon sell price for bringing that customer to you. So unless your margins are huge, chances are you are losing money on this deal.
If using Groupon, you the business owner need to be comfortable giving up all short term profits in exchange for getting traffic to your place of business. Once you get new customers to your door it’s time for you to say goodbye to Groupon and take over. Remember, Groupon’s sole purpose is to bring you new customers – they’re not concerned with turning those new customers into repeat customers – that’s your job. Sure you can keep running Groupon’s but unless you have another clientele base that can make up for these daily deal seekers you won’t be in business for too long.
Turning Groupon Customers Into Regular Customers
So how might you ask do we go about flipping our new Groupon customers into repeat paying customers? Easy! Have a product or service that people like. That’s most important since no one’s coming back to your place if you can’t get that right. Even if you’ve provided them with a different deal or discount while they were in your place for the first time, you still wouldn’t have to lose money by giving away 50% of your profits to Groupon. Another way is to connect with these new customers on social media or on their smart phones. Today, people spend the majority of time on sites like Facebook, Twitter and Google+, and everyone seems to have an iPhone or an Android smart phone. It’s a great way to extend the conversation past your place of business and be able to inform and target your customers on a real time basis. Plus you are building and maintaining relationships with these new customers which help create brand loyalty and repeat business.
Interested In Getting On Groupon?
If you’re interested in getting on Groupon, definitely go for it. But prior to starting your campaign make sure you have a plan of your own in place to convert those new customers into repeat customers. Give them a reason to come back by offering them a deal on their next meal or purchase in exchange for their email address; you now have a way to connect with them in the future. If they like the experience, they’ll be more than happy to give something to get something. Get them to follow you on social media or opt into your mobile program for future offers and promotions. Most folks are on Facebook anyway and if they take a liking to your product they won’t mind seeing it scroll by in their News Feed, especially if they can be incentivized to experience it again. Groupon is a great way to get new customers to experience your product or service, but turning them into regular customers is entirely up to you.