How to Lose Money with Groupon

If you talk to many of the small businesses who decided to try to Groupon to increase business. They will tell you that they received a generous spike in sales however, hardly any of them converted into lasting, repeat customers. The success to making Groupon work for you depends on your follow-up marketing process. Groupon seems like a great idea at the on start; sign up and receive an influx of customers resulting in higher sales. However, are they really customers or just one and dones taking your staff away from your current clients and losing money for your business.

Groupon, for many businesses, is an exercise in bending over to pick up a $1 and dropping $5 out of your pocket.

If you want to lose money while using Groupon, then continue down the “no customer conversion strategy” path. However, if you're interested in making Groupon work for you, increase your sales and create lasting clients; then read on.

Strategy Before Tactics

If you've been reading my blogs, heard me speak or had a conversation with me, you know that I preach “Strategy Before Tactics” endlessly…and for good reason! – The above is a prime example. If you have no plan, you have no path. Without a path, you have not opportunity to obtain the end goal. I've outlined an effective Groupon marketing strategy for you so your next campaign can be both a spike in sales and a lasting, consistent influx in customers.

* Decide what you are looking to achieve with your Groupon campaign.

* Understand who your target market is and what type of people come from Groupon campaigns. – This will give you insight into what they value.

* Create an educational experience for your Groupon prospects. – This includes educating them on what you do, how you do it and what benefits they value that you can provide.

* Determine what your next stage TRY is going to be for your Groupon redeemers – Groupon is great for getting people to KNOW & LIKE you but they are still trying to build TRUST with your business. By offering another, longer TRY package, such as “Groupon redeemers only – Sign up today for an unlimited drop-in month pass” or “Sign up today for six additional sessions”, will allow them to gain that familiarity with your company even further.

* Develop your final offer to fully convert your Groupon prospects into full fledged clients. – You already have packages that your loyal customers partake in, make sure to let your Grouponers know about them. Remember to explain the solutions that you are providing for their desires and frustrations so they remember it's about them.

* Work with a professional Marketing Consultant and Graphic Artist to create your package flyers so they accurately reflect your company brand so that your business continues to build authentic credibility consistently across every touch (employees, phone message, showroom, website, logo, business sign, cards, etc.). Remember: Nothing erodes sales faster than eroded trust and when a brand isn't consistent, you loose trust extremely quick.

* Train your team. – If your employees don't understand the end goal and the strategy attached, they won't follow the plan you've created. Help them get on board by including them with the process, training them on how to use each step and offer an incentive for each Groupon prospect they convert.

* Follow through when the Grouponers use your service. – It's easy to create the plan and marketing pieces but if you don't follow through, it was wasted effort.

* Listen. – Listen to your employees on the reasons why the prospects didn't move to the next stage, re-evaluate and adjust accordingly.
Track your conversions. – To determine if Groupon is a viable lead generation for your business, you need to track the conversions. Within your CRM system, mark your Groupon prospects and analyze how far within the conversion process they got.

* That's it! By adapting a marketing strategy, I know you can make your next Groupon campaign really work for your company and bring in more lasting clients. And, I want to hear about it! Share with us how your Groupon strategy resulted in more loyal customers and continued increased profits.

Want to know about Marketing Strategies? Download our FREE ebook, 7 Marketing Steps to Business Success. Can't wait to read the book? Call or email [mailto][email protected][/mailto] us! We'd love to have a complementary conversation to review your current marketing efforts.