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[FACEBOOK GROUP DISCUSSION]: Looking for feedback on Groupon

by Stacey Riska on April 19, 2016 No comments

I’m part of many different Facebook groups. Just the other day, someone posted a question about Groupon.

Below is the thread so you can see the original question and the comments people posted. (note: names are removed to protect privacy – only initials are provided)

POST BY S.A.:

YOUR CUSTOMERS ARE LOOKING FOR YOU ON GROUPON!

That was the title of an email I got the other day. My first knee jerk reaction was “Not really”, then “Yeah, just the cheapskates”.

I’ve taken advantage of a few Groupon deals. When I asked the merchants how Groupon was for them they all said something like ” It gets a lot of people coming in the door, I don’t make any money from it, it actually costs me money, but I hope they will become regular customers”.

One guy even said he was not doing it again because everyone that came was so cheap and just wanted a deal. ( I wonder why )

Perhaps Groupon and the many services like it do get customers in the door for some, but I am not a big fan of the idea. I would much rather employ Dan Kennedy type marketing and weed out those that shop on price only.

Thoughts?

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(N.H.) I used Groupon a couple of years ago with a cosmetic surgeon client. We did a Botox special. You MUST have your staff scripted for the upsell. It actually worked ok. Did not do it long term.

(T.S.) My wife does it and it works, guess it depends on what you’re selling and if you have a back end

(G.B.) N.H. hit the nail on the head. You can use Groupon to crush it, but the conversation goes from being “the cheapest or best deal” to the “best service/experience”

Heck even your Groupon ad could (dare I say “should”) be about that.

That’s what Dan’s marketing is really about:

“Give them another reason besides PRICE to buy from you.”

I use Groupon and I only price shop when there’s no other info to buy on. And I buy a lot of high-end goods.

So… Groupon can be an amazing tool if you use it right. It’s not an “either/or” situation.

If your groupon ad is all about price and saving money, then you’re going to get price shoppers.

If your groupon ad is about experience, being the best, giving the best, etc. You’ll get people who want to try out the luxury for a discount and you can show them why they should invest in luxury all the time AND pay full price.

(T.S.) If you use groupon as a top of the funnel lead generator, it’s no different than a free plus shipping offer. Your goal should be to generate leads from it, not convince them to buy something full price from a single ad. At least that’s our experience

(“Small Business Stacey”) I’m uber-passionate about using daily deal sites like Groupon. It was the key strategy that took my struggling coffee & smoothie business from $500K in debt to a 7-figure profitable business. I too had those same initial concerns because there was so much negativity about it, but I figured out how to do it RIGHT (unfortunately most small businesses do it WRONG – like the typical “Buy $20 for $10 deal”). I now teach others how they can use daily deal marketing to skyrocket their business growth and get massive profits. (self plug coming…..) You can take a free quiz which will tell you if it will work or not in your business http://bit.ly/1oFShqS or you can learn more about the program here http://bit.ly/1Wfmrz2

(S.A.) Never say never. My opinon of Groupon and others was not good, but I can learn.

(S.S.) Never blame any medium or WAY of marketing – they all can be made to work. In the case of Groupon, those who don’t have a system for upsells/cross-sells/repeat sales/etc. will often claim, “Groupon doesn’t work.” (*Those people will claim that a lot of advertising and marketing WAYS don’t work, of course.)

(T.S.) Agreed S.S. It’s amazing how many “business owners” don’t understand customer acquisition. Groupon is short for group coupons. Coupons are loss leaders that bring in customers. Dan Kennedy preaches that he who can pay the most for a customer wins

(S.SE) as was mentioned above, Groupon can work if done correctly. I managed to use it and still average full price. The other key is to have an exit strategy to get off the cocaine and stay sober. If you become addicted to it without an exit strategy, you’ll be shoving that needle into your veins until your business self implodes. Get in, get the customers, make them yours not Groupons, and then get out.

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Anything else you’d add on the topic? Share your comments below.

 

stacey

About Stacey Riska

Stacey Riska, aka "Small Business Stacey" is a serial entrepreneur who is passionate about helping small and local business owners get MORE: MORE leads, MORE customers/clients, MORE sales, and MORE money. She transformed her coffee and smoothie business from being $500K in debt to a 7-figure profitable business by using daily deal marketing. Now she teaches others how to skyrocket their business growth and get massive profits. When not saving the small business world, she enjoys sipping red wine, eating chocolate (who doesn't!) and spending time with her amazing husband.

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Stacey Riska[FACEBOOK GROUP DISCUSSION]: Looking for feedback on Groupon

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