Is Groupon good for your business?
Thousands of businesses have started using Groupon to get the word out. It’s a fantastic tool to gain exposure for your business to a group of local residents who may not have heard of you. You can visit there site and see success stories for many businesses who have used the tool.
If you’re not aware of Groupon, it’s a company that features a business in a daily email that goes out to people who have signed up. Generally you, as the business owner, give a discount for people to come try your product or service. From their its up to you to keep them as a long term customer.
I think it’s a great way to kick start a slow business or a brand new business that’s only been going for a short while. But what’s really great is a brand new mobile app that Groupon is coming out with…
Groupon is about to unveil its innovative mobile app tool that it hopes is going to change the way we will eat, shop and play. Groupon Now, set to release next month will add to the daily Groupon deals by offering time and location specific deals. Per Mashable-
When a user opens up the smartphone app, he or she will be presented with just two buttons: “I’m hungry” and “I’m bored.”
Either choice will then present a wide range of choices depending on the time and location of the mobile user! This tool has potential to better business for many, especially small and medium enterprises that see varying traffic at different times in a day or week. Groupon Now may prove to be an excellent way to match demand to supply, benefitting both the consumer and the business. By offering deals during slow business at specific locations, businesses can increase profitability, manage resources and reduce wastage. Its also a win-win for the hungry or bored consumer as they get a deal when and where they want it.
This app could be a game changer on how local business market and gain new customers. It allows the user of the app to make split second decisions based on where they are. It brings a new meaning to spontaneous buying.
There is a concept used in department stores and especially convenient stores that sets up products in ways that makes it easy for a spontaneous purchase.
One of the stories that’s often used to illustrate this principle is when a convenient store noticed mostly men coming in during late hours to pick up diapers. The store owner decided to place beer next to the diapers. After making that change beer purchases had doubled.
While that might be a story used only for illustration purposes it does force you to think about buying psychology and the thoughts going through the heads of your prospect as they enter the store.
This Groupon app brings that story into the City as a whole. Now store front owners can compete with the attention of prospects by offering real time Groupons based on where they are and the time of day. If Groupon and the store owner can add scarcity with limits or put time constraints on the offers it’s possible to create local mobs of people running for the next Groupon event.
We will see if that’s the case. Either way, if your business model supports Groupon, it might be worth trying. They don’t get paid unless you get paid and if you’re willing to give a fantastic deal as a loss leader it possible to gain customers for life… if you treat them right. Keep your eye out on Groupon over the coming months and if you do decide to use it, leave me a note and let me know how it worked for your business.
Enjoy and prosper,