is Groupon good for business

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Groupon Marketing As An “Experience” Not A Commodity

by Stacey Riska on July 5, 2017 No comments

Before you click off this post, PLEASE STOP, read and learn – because knowing how to run a daily deal on a site like Groupon the right way can bring in new customers, clients and patients you’d never be able to reach on your own, and can put more money in your pocket.

There’s a stigma out there – perhaps you’ve heard it, perhaps you’ve even said it: “Don’t do a Groupon. It doesn’t work. You’ll lose money.”

I “get” it because that’s what I heard, too, when I was looking for a strategy that could bring in customers now and give me cash fast. You see, just a few years ago, I was $500K in debt, and I didn’t know where my next customer was coming from. It’s a story I share here if you want to know more about how I took my struggling coffee and smoothie business that was $500K in debt to a 7-figure profitable business.

The reason there’s so much negativity out there about running daily deals is because small business owners are running deals that are “a piece of pizza.”

What do I mean by that?

A piece of pizza is just a piece of pizza right? Sure, Joe’s pizza may have more toppings, and Franco’s pizza may have a thicker crust, but it’s still just a piece of pizza. It’s a commodity — anyone can get it anywhere, and most people will just look for the cheapest price (with some minimum level of quality, of course!).

And that’s why so many businesses fail when running a daily deal on a site like Groupon. I’ve seen it before, dozens of times: “Get $20 of pizza for $10” deals. It’s a race to the bottom. All that is going to do is bring the bargain shoppers, who likely won’t return, because “a piece of pizza is just a piece of pizza.” They can get it anywhere, and they’re just going to be looking for the next deal.

But what if that same pizza shop were to create an experience with their pizza deal? Here’s how that pizza shop could create not one but two different experience packages for something as simple as “pizza”:

ROMANTIC ROMP/DATE NIGHT

  • Valet parking
  • Bottle of wine with meal
  • Special menu with “romantic names”
  • Chef writes your name or makes a heart of toppings
  • Candles on the table
  • Live/romantic music
  • Take their picture

FAMILY NIGHT

  • Play DC/pick the music
  • Toss your own dough
  • Put on your own toppings
  • Name your pizza
  • Have your picture taken and posted and shared
  • Unlimited (non-alcoholic) beverages

Since these packages offer more than “just a slice,” they also warrant a premium price – and people will pay it because it’s an experience that they’ll go and brag to their friends about and post all over social media. This is the kind of attention that can bring you more new customers.

This is what I did in my coffee and smoothie business. Instead of offering a “smoothie” say for “$20 for $10 deal,” I offered “The Ultimate Hawaiian Getaway Without A 12-Hour Flight” — catering packages starting at $575 where a professional “tikitender” will come out and setup an authentic tiki bar and serve gourmet all-natural fresh fruit smoothies topped off with a Hawaiian parasol. A real “vacation in a cup!”

Which would you rather have? The smoothie or the vacation in a cup? Yeah, same with the other people who bought my Groupon deal.

Transforming a commodity into an experience completely took the bargain shoppers out of the equation. Price didn’t matter – people wanted this package. Because I was not offering higher priced packages, I made money on every deal sold — and, because they had to contact me to reserve their event, I was able to (1) get their contact information right then and there to build my list, and (2) offer upgrades such as alcohol service, additional hours, decorations and more – extremely profitable that were outside of the Groupon deal and went straight to my bottom line.

Whether you run a daily deal or not, the lesson to be learned is: Don’t be a “slice of pizza.” Be a “pizza” experience

NOTE: Learning how to run a daily deal the right way can transform your business as it did mine. Check out the Daily Deals for Massive Profits Training Program and skyrocket your business growth. Click the image below to learn more. You’ll be glad you did.
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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 RiskaGroupon Marketing As An “Experience” Not A Commodity

[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?

**********************************************************************

(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

Using Daily Deal Sites Like Groupon: Good Or Bad For Your Business?

by Stacey Riska on March 29, 2016 No comments

To Groupon or not? It’s a question I get asked a lot. Here are some questions you’ll need to answer to know whether it’s a good marketing strategy for your business:

1) What are your cost of goods? Under a “typical” deal, you’re only going to net 25 cents on the dollar. So if you have a product/service that has a high cost of goods, you “could” offer it as a loss-leader, but I suggest you create a package of products/services that will provide you higher margins.

2) Can you offer upsells and/or cross sells? This is a key strategy to making daily deal marketing work for you. Sure, you can “get ‘em in the door” with the deal, but the way you make money is to then have upsells and/or cross sells that they just can’t resist.

3) Are there times when you’re slow and/or can handle additional capacity? When you structure your deal correctly, YOU control the process – how many deals you’ll sell and when/where/how it’s valid. So if your restaurant is busy Friday & Saturday then exclude those days.

There are other questions that your business will need to answer to determine whether daily deal marketing is a good strategy or not for your business. You can take the quiz and find out.

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.

WantMore


 

Stacey RiskaUsing Daily Deal Sites Like Groupon: Good Or Bad For Your Business?