Are You Still Interested In Using Groupon?

Posted by on April 7, 2011 6:08 pm
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Categories: C1A - Marketing

Small Business Marketing A Lemonade StandThere have been several people interested in Groupon lately. It’s definitely gaining more steam. At the same time, I’ve spoken to a few business owners who have told Groupon to “talk to the hand” because it’s not for them.

Let’s be clear on something. Using Groupon as a vehicle to market your business could work. Remember, it’s one tactic in your marketing arsenal. You’ll need to be sure you deliver the right message at the right time. That’s what marketing is. And you don’t know if it will be a good fit for you unless you try it.

For those of you who are going to use Groupon as a tactic. I’d like to suggest a few ideas.

Let’s say you’re running a lemonade stand.

You should know your numbers.

How many glasses of lemonade are you selling per day? What are your expenses? What is your profit margin?  What will Groupon take when you make your offer.

If you don’t know what the expenses are and the potential return on investment you may just be throwing junk on the wall and hoping it sticks. Be smart about your investment.

Another example of this is the Profit Leak Audit I offer to qualifying businesses. Yes, I charge a large fee. But I guarantee you will find 10x the amount of my fee in hidden revenue. That makes it a good investment because you have an expected ROI with a guarantee.

If you can’t see the same type of calculations from Groupon then think hard before you do it. Make sure it works for YOUR business.

The second thing I would suggest is be ready to up-sell, cross-sell, collect customer data and sell some more after you get a customer from Groupon.

Going back to our lemonade stand… be sure to offer a large cup of lemonade for “only” 25 cents more. Or you could offer, If you buy two cups you get the third at half price. Would you like to grab two now so you can take a cup to your friends?

You get the idea.

So many business owners get an A+ at getting new clients and customers into their business but fail miserably at getting them to buy more or do business more frequently. Be sure you have a complimentary offer ready for anyone you bring in using Groupon so that you can maximize the return from this tactic.

If you’re still interested in using Groupon, go for it. Be sure to put the right metrics, analytics, and back end processes in place before you begin using it. It will maximize your efforts in the long run.

Enjoy and prosper,

Jay

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3 responses to Are You Still Interested In Using Groupon?

  1. Are You Still Interested In Using Groupon? | Midia Social April 7th, 2011 at 7:15 pm

    […] Read the rest here: Are You Still Interested In Using Groupon? […]

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  2. Thomas May 11th, 2011 at 10:31 am

    A few weeks back there was even a half hour report on Dutch television on prime time about groupon and if it was interesting for your business. I would agree to know the full ins and outs about Groupon before to go make a deal with them.

    Reply

  3. Jay Simcic May 11th, 2011 at 12:41 pm

    I agree with you. It’s important to get all the details out on the table to truly determine if it’s valuable. The thing is, most business don’t know what a customer/client/patient means to them in value. They don’t know what the LTV of a customer is so how can they truly determine an ROI. Most can’t and are just hoping to generate new business without knowing the impact to their bottom line.

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