Everyone loves a deal. That, in a nutshell is the very concept that has shuttled sites like Groupon.com and its ilk to widespread success. Digital coupon sites are springing up all over the world, from London to LA, and they provide local business with the opportunity to showcase their wares and court new clients. However, while Groupon and similar sites can offer your business a shockwave of shiny new leads and customers, there are several distinct marketing considerations to take into account before going down this avenue.
Business Marketing Tips When Using Coupon Sites
1. Identify Your Loss Leader. Groupon deals are only snapped up when they represent a true bargain. Therefore you need to be able to identify a loss leader that you can use for this purpose. This should be something of high value (or perceived value) that you’re giving away at a huge discount to RRP. Most deal sites will need you to offer a minimum applicable discount to RRP before you can list a product with them.
2. Determine A Set Volume. If you’re providing a time consuming service or a tangible product, decide what your maximum volume will be at the special price. For example, if you own an online flower shop and are offering a 70% discount, make sure you limit the number of deals that can be purchased, or you might struggle to deliver beyond a point. Additionally, creating a quantity limit adds more urgency and perceived value to your deal.
3. Don’t Shoot Yourself In The Foot. Sites like Groupon can certainly bring a short, sharp shock of publicity to your door, however make sure this is not at the expense of your existing clients. This is especially true when offering any time consuming service. For example, if your business offers spa treatments, you would want to know the busy times of the day and week as opposed to time slots where you have spare capacity. In that case, make the coupons valid only for the off peak times, or you would be prioritizing loss making clients over those that are paying the standard price.
4. Coupon Sites Must Be Seen As A Long Term Tactic. The truth is most businesses don’t make much money, if any, through the sale of their digital deals. At least not initially. However, a certain percentage of coupon customers are liable to return to your business if they liked the product or service. Coupon customers are also more likely to feel satisfied at having snapped up a bargain, and so are inherently more likely to leave positive feedback and promote good word of mouth business.
5. Identify The Coupon Sites That Will Work For You. Groupon isn’t the only coupon site in town. The digital coupon market has truly proliferated over the past few years with many options for all types and location of business. Create a list of possible coupon sites to try, and note the sort of deals and activity within. It’s important to target sites that have a large customer base.
6. Test & Track. As with any type of marketing campaign, it’s important to analyse the results. What was the overall financial impact of the campaign? How many new customers were retained? What soft benefits were achieved through the campaign (for example positive product reviews or Facebook Likes)?