My fiancée is obsessed with Groupon and the vast array of competitors who’ve entered the social promotions space in the past two years. The model is simple: You attract new customers at a reduced rate, in many cases below break even, in the hope that a certain percentage of these frugal couponers will eventually become repeat customers or that you can upsell them into spending beyond the coupon’s face value.
It got me wondering how successful these restaurants, salons and other small businesses are at converting new clients and ultimately achieving a positive return on their investment.
According to a study conducted by Rice University, only 66% of companies who participated in Groupon promotions did so profitably. How can you make sure that your small business lands in the lucky two thirds? Just follow this model:
1.) Make sure your employees are happy. The Rice study cited employee satisfaction as being the biggest indicator of a promotion’s profitability. Make sure you communicate with your employees what is happening, so that they will be ready for the rush. Offer compensation to make up for lower tips and possible longer hours.
2.) Capture contact information upon redemption and ask for the opt-in. Have a comment card, or better yet, iPad available to collect your customers contact information.
3.) Follow up via email/phone/mail. You’d be surprised at how many businesses my fiancée never heard from again---despite having provided contact information at the point of redemption.
4.) Ask for feedback by sending them a quick online survey. Contact customers immediately after a sale or service has been rendered to get their feedback while the purchase is still on their minds.
5.) Keep them coming back. You got the hook; now reel them in with your own Groupon deal based on your terms. Send them a coupon with a discount that works for you. Chances are they have already made up their mind on whether or not they will return, but either way this is a good nudge.
If you are thinking or running a Groupon or any other social coupon deal, the question no longer is: Will it be successful? But rather, how do I prepare and follow through?
What are your thoughts on social coupon sites such as Groupon, LivingSocial, and Bloomspot? Have you had success with social couponing?
Continue reading "5 Tips for Social Couponing Bliss" ... Read the full article
MarketingProfs provides thousands of marketing resources, entirely free!
Simply subscribe to our newsletter and get instant access to how-to articles, guides, webinars and more for nada, nothing, zip, zilch, on the house...delivered right to your inbox! MarketingProfs is the largest marketing community in the world, and we are here to help you be a better marketer.
You may like these other MarketingProfs articles related to Content:
- Three Ways to Adapt Your Sales Content for Virtual Selling Success
- What B2B Executives Want From Thought Leadership Content
- Six Tips for Generating More Leads With Your Marketing Content
- The Impact of Digital Currencies on Future Marketing Efforts: Jeremiah Owyang on Marketing Smarts [Podcast]
- A Snapshot of the Content Creator and Influencer Economy [Infographic]