• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

GILL Solutions

Growing your business..Should be Strategic!

  • Our Process
  • Services
    • Full Service
      • Search Engine Optimization Service
      • Conversion Optimization
      • PPC Advertising Management
      • Social Media Marketing Service
      • Full Stack Development
    • Google Analytics Audit
    • Marketing Coach
    • Domains & Hosting
  • Training
    • Google Analytics Bootcamp
    • YouTube Marketing Bootcamp
    • Marketing Certification
      • Conversion Optimization Certification
      • Digital Advertising Certification
      • Search Engine Optimization Certification
      • Marketing Automation Certification
      • Content Marketing Certification
      • Social Media Strategy and Deployment Certification
  • About
    • Our Story
    • Contact Us
  • Call 1-877-801-4090

Oct 31 2016

Groupon and LivingSocial for Small Business – Yes or No?

Local deal websites like Groupon and LivingSocial can be a great way for consumers to snag a deal – but what do the participating businesses get out of it? If you run a local, small business of the type you often see offering these deals, you might be curious. Maybe you’re seeing dollar signs flash before your eyes as you think about all the sales. Or, maybe you’re wincing at the idea of slashing your prices that much.

Groupon and LivingSocial

 

What’s the Deal With These Deals, Anyway?

LivingSocial and Groupon are the two major players in the mass coupon business. These sites give businesses the opportunity to offer a limited-term promotional discount. They’re pretty popular, so participating businesses gain a lot of exposure, and usually a lot of sales too. In exchange, the deal site takes a percentage of the revenue.

There’s an obvious tradeoff here – volume and exposure in exchange for reduced (often drastically reduced) revenue. So creating a Groupon or LivingSocial deal is generally not a great bet if you’re mostly concerned with short-term profit. If you’re looking at it as a long-term investment though, it might be a good choice. You just have to know what you’re getting into.

Mass coupon deals like this are only – I repeat only – a good marketing move if you look at them as you would any advertisement. They are a marketing expense, not a way to instantly drive profits. Treat them as such, and you may be able to reap the rewards (in the long run). If you want to make quick money, this is not the way to go.

The Dos and Don’ts of Using Groupon and LivingSocial

DO use it if you’re a primarily service-based business with the potential for repeat business and you and your employees are prepared to go the extra mile for your customers using the deal. Because Groupon and LivingSocial deals primarily act as a means to interact with new customers, smaller businesses that offer services rather than goods reap the greatest benefits. You’ll be able to deliver a memorable one-on-one interaction. If you do it right, your deal customers will become your regular customers, and you’ll get some free word-of-mouth advertising too.

DON’T treat your customers differently when they’re using the coupon. That is, you should be delivering great customer service across the board, whether your customers are paying full price or nothing. And they might be paying very close to nothing when using the Groupon or LivingSocial deal. Don’t lose sight of your objective – building a larger customer base. If that’s not your objective, you probably shouldn’t be using this method in the first place.

DO offer the deal during your business’s slowest time. You don’t want a flood of people overwhelming you and your employees when you can’t handle it. That will give the opposite of the intended impression. If you extend your Groupon or LivingSocial deal into the time of week/month/year when you are normally busy, your deal customers will likely not get the amazing service that will bring them back. And they probably won’t recommend you to friends and family.

DON’T let there be any hidden stipulations. NO fine print (that isn’t obvious and isn’t included in the main text of the description). Let’s say you run a nail salon. Your Groupon is for a half-price manicure. Your customer buys it with the intention of getting a gel manicure (it’s a popular service). But they arrive and find that they have to pay $25 extra for gel. If they didn’t notice that in the Groupon’s terms, they’re going to be unhappy. Yes, you might get more buyers if you don’t clearly note the distinction, but the overall effect will be negative. You want customers to know exactly what they’re getting, and what they’ll pay if they want additional services.

DO offer a product or service that stands out from competitors. For instance, there are lots of bakery and sweets Groupon and LivingSocial deals out there. One, in particular, specializes in bundt cakes. They make tiny, single-person bundt cakes. They make medium-sized, 4- or 5-person bundt cakes, and they make very large bundt cakes for 10 or more people. You might pass that business by if you’re just in the market for a treat or birthday cake. But if you see a shop that just makes bundt cakes and offers an exceptional deal, you might stop and think. If you get the deal, go there, get amazing customer service, and get incredible cakes, there’s a good chance you’d go back. You might even tell your friends.

DO collect names and emails with confirmation to communicate directly with them. This is critical to increasing the lifetime value of each new client secured this way. The idea here is to grow your list of future regular priced business opportunity. Fail to do this, and you’ve removed a great opportunity for this strategy.

This is what these mass coupon websites are all about – getting a chance to show consumers en masse, what your business is all about. If you approach it that way, it could be a win. If you look at as a short-term dollars-and-cents proposition, you’re doomed. Deals like this only work if you refuse to lose sight of your brand’s identity and your customer focus.

Written by Andrea Achterberg · Categorized: Marketing · Tagged: advertising, marketing, social media

About Andrea Achterberg

Andrea Achterberg is a writer and part-time history instructor from Bakersfield, California. Her background is in the social sciences, and she enjoys applying her knowledge and experience to different fields, including business and marketing.

Primary Sidebar

Follow Us

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

Email Newsletter

Sign up to receive email updates weekly and to hear what’s going on with us!

Business Strategy

Important Benefits of Facebook for Your Business

May 15, 2020 By George Gill

Whether you are a person who likes social media or not, if you're in business, there is a good chance that at some point you've considered FaceBook for your business. Understanding what the benefits are, is an … Continue Reading about Important Benefits of Facebook for Your Business

Before You Start – Is Social Media Marketing Profitable

May 14, 2020 By George Gill

We all know Social Media is popular. But before your business goes down the path of investing resources and budget into this marketing channel, you need to know what to expect. Most importantly can it be profitable … Continue Reading about Before You Start – Is Social Media Marketing Profitable

Do You Have to Pay for Search Engine Optimization

May 12, 2020 By George Gill

Every business I have ever spoken to has unanimously agreed, they would love to be on page one of Google for the keywords directly related to their business. Most believe they deserve to be at the top, and the … Continue Reading about Do You Have to Pay for Search Engine Optimization

How Important is Conversion Optimization to Your Business

May 11, 2020 By George Gill

With over 20 years in the digital marketing field, the number one approach to quickly generate the greatest impact on a business's results that I've witnessed has been accomplished through conversion rate … Continue Reading about How Important is Conversion Optimization to Your Business

Why is Siteground so expensive vs competitors

Why is Siteground so Expensive vs Competitors

May 7, 2020 By George Gill

Hosting your website is a very big deal for many reasons that we'll discuss in this article. Siteground is a hosting company (click to see Siteground's current offer) we often recommend, even though they tend to be … Continue Reading about Why is Siteground so Expensive vs Competitors

Important Business Metrics

Most Important Metrics for Better Business Results

May 5, 2020 By Elaine Bennett

Successful businesses are built on exact, timely, and relevant data. You can only hope to make the best business decisions if you have the information and insights necessary to support your strategy and your … Continue Reading about Most Important Metrics for Better Business Results

Footer

GILL Solutions Management
7901 4th St. N STE 4155
St. Petersburg, FL 33702

GILL Solutions Management
3080 Yonge Street, Suite 6060
Toronto, Ontario M4N-3N1

Follow Us

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

GILL Solutions Management
P.O. Box 30024 RPO Chemong
Peterborough, Ontario, K9H 7R4

  • Terms and Conditions
  • Privacy Policy
  • Our Blog
  • Student Login
  • Contact Us

©2020 GILL Solutions Management LLC