Groupon is making serious waves in internet marketing. Customers for a wide vary number of demographics are buying Groupon coupons. A wide selection of small and medium size retailers, members of the service industry and restaurants are signing up for the program. The program is so popular that retailers are on a long waiting list in such areas of Boston to use the program.
So how should small and medium size business get ready for a Groupon campaign? Here are some steps you need to do to make sure you are ready for a Groupon and you maximize your program.
1) You are about to get a large number of new and old customers. Are you ready? Have you stocked up on inventory? Has your ad on Groupon targeted certain aspects of your business so the low profit items are not included? Do customers have to spend a minimum before the ad kicks in? Do you have enough staff? Do they know about the ad? Remember you are going to see some new people and you must provide higher than expected customer service. All small and medium size business are in the service industry (like it or not) and are content publishers (for another blog).
2) Tracking. How are you going to track what coupons are cashed in from new customers and what coupons come from old customers? What are the Groupon Customers buying? Are they just using the offer or are they buying additional items? You need to have your staff ask questions. Try to get as much information out of the customers without bothering them (easier said then done). Track everything. You are paying a lot of money to have this coupon so you need to find out what is working and where are your customers coming from.
3) Retention. How are you going to make these first time shoppers regular customers? You have spent a lot of money running this campaign you need to make some of these new customers regular customers. Have them sign up for your email list, Facebook page or Twitter account. Publicize that they will receive special offers that will only be published on these platforms. Give them a “Groupon Groupon”. If they use a Groupon coupon they will receive a special coupon for $5 off their next $100 purchase (or some type of offer that will not cause a lot of profit loss). You staff should be on extra alert after the coupon runs. Service is everything for small and medium size business. If you are not nice to them they will go somewhere else.
I have mixed feeling about Groupon ads. For the consumer they are great. I have bought some myself. For small and medium size business they are can be a mixed bag. Before you schedule your Groupon Ad make sure your review your business to make sure that you are getting the most bang for your buck for your advertising dollar.
