Social Coupons

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Social Coupons

Groupon, Poop-on?

NO. We say, “Groupon, right on!” But it’s all in the strategy, and without one you can get into big trouble.

What would happen to your business if suddenly, you had 2,570 new customers lined up at the door, all expecting a premium experience at a fraction of the price? Before you answer, don’t forget the majority won’t respond to an upsell pitch, they’re not groomed to tip on the pre-discount total, and few will become loyal customers.

A Grouponer is in it for the experience as much as the product or service. They’re looking for something nice, fun or different at an exceptional price. Weather it’s sedation dentistry complete with footed jammies and a lavender-scented eye mask or the hottest new fusion cuisine, your audience expects the same care and attention you’d give your best customer.

Here’s what you need to know before you join the social couponing trend:

  1. How much business is too much business?
    If your answer is, “that would be a great problem to have” then you need to think again. Every accommodation has a threshold. How many customers can you serve well, and do you have the time, tools and infrastructure to meet the frenzy of demand?
  2. How much can you afford to give away?
    You’ll pay a commission to Groupon based on your volume of sales. A highly-trained sales person at Groupon will act as your campaign consultant, and will encourage you to discount your product or service as low as possible. Know your limits before you enter into the conversation or you may regret it.
  3. What’s your discount-to-loyalty strategy?
    Without one, you’ll never see the majority of your new customers again. What are you going to do about that? One strategy is to offer a second deeply-discounted service to them on the spot, redeemable at a future time. You won’t owe Groupon a dime for the second sale, which may make the discount easier to absorb. Businesses with a post-Groupon loyalty strategy will fare better in the long run.

All of this may sound intimidating, but many companies successfully use social couponing as a single element of a greater marketing plan. Give us a call if you have questions about Groupon, need help getting a social couponing campaign off the ground or want to talk about your marketing plan in general. Meanwhile, check out these hilarious, real-life Groupon offers. There’s a market for pretty much everything these days!

Category: Marketing Tips

About The Author

Insyntrix Marketing Team

Insyntrix is a full service marketing agency located in Denver, CO. We regularly publish helpful tips and tricks designed to help you elevate your marketing efforts.

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