To Groupon or Not To Groupon - That is the question ...I was reading an article published in Social Media Today about Groupon. It is a fabulous article and observation - the comments back and forth are very good as well.
- Below are short parts of the article
- Copy of my comments to the blog
- link to original article so you can read it yourself.
Considering Offering a Groupon? Read This First.I’m going to break down why I don’t like Groupon and why I think group-buying as it stands now is horrible. I’m going to use Groupon in this post to stand for all group buying platforms (with some small exceptions).
#1 – Groupon does not make financial sense for businesses
#2 – Groupon buyers are bargain shoppers
#3 – Groupon does not build loyalty
A Better SolutionHere’s what I think. I think offering a Groupon is lazy. No seriously, it’s lazy. You want to bring in new people? You want to get more business? Then stop focusing on these bargain shoppers; instead focus on YOUR CUSTOMERS! If you have people walking in the door already, why not turn them into your marketing department. Take some time to build a community on Facebook, Twitter or wherever your customers are and offer them the discounts instead. Here’s an idea: Offer YOUR CUSTOMERS 50% off to bring in someone new (who will pay either full price or a slightly reduced price). This way you are rewarding your existing customers with a discount AND getting new business at full or nearly full price. They already come in, they already like you, why not use that to your advantage? Here’s another idea: Why not build a strong Twitter and Facebook following of customers and people that already like you? That way if things are slow and you are considering offering a Groupon, you can save yourself the cut that you’d pay to Groupon and bring your customers back in. Reward your loyal fans and followers with 50% off, not just any stooge with an email address and a taste for daily deals. You might even find that your customers will tell their friends. And at the very least, you are saving yourself around 15%.
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