When the group discount site Groupon first appeared on the Internet radar in 2008, it seemed like a bane for small business owners looking for a way to pump up sluggish sales and attract new customers. It’s daily deals are known to attract hordes of interested, deal seeking consumers.
But as other deal sites have set up shop, and numerous businesses have bought into the group buying model enough to try it out, an unmistakeable backlash has evolved, with many being quick to point out that the actual benefit of participating in Groupon to small businesses and their communities seem small. So does that mean you should throw in the towel, avoiding Groupon and the like altogether?
My answer: not necessarily. But for your Groupon experience to be successful you need to know how to use the service properly. Here are three things to keep in mind:
1. Know what you are getting into. Make sure that you understand the nature of “a Groupon” and the kinds of customers it attracts. The people who will be coming to your business are doing so in order to take advantage of your offer. They are not necessarily looking for a new restaurant or store to start frequenting, and they may be less willing then other walk-in customers to spend more than they need to. It is up to you to convince them otherwise. If you don’t think that you can do that, then don’t offer a Groupon in the first place.
2. Choose your deal carefully. While you want your Groupon offer to be alluring enough to attract customers you don’t want to break the bank doing it either. Either choose a lower wholesale cost or overhead item, or one that would naturally lead to other purchases like a buy-one-get-one-free or buy one and get a heavy discount on the second purchase. You may also use Groupon successfully to promote a new product or service.
3. Prepare your business and your employees. Make sure that your business is both adequately equipped and stocked to handle the extra traffic and that your employees know how to handle the Groupon customers. Again, as I mentioned above, your approach to these people will be a bit different, not only may you need to work harder to provide a good experience, but you may also need to give these people a further incentive to come back. One method: make them aware of the perks of your customer loyalty program if you have one.
In short, Groupon may bring a lot of business and attention to your company, but like most things in life, you need to know how to use it properly.