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4 Tips to Avoid Being Burned by Groupon

avoid being burned by groupon

 

Everybody loves a bargain, and that is why the CEO of Groupon (Andrew Mason) is a billionaire

at the tender age of 30. Some businesses that jump on the Groupon band wagon, say that

customers that use these specialized deals are one-time only and not return customers. In

fact, almost 90% of Groupon users never return to an establishment and pay full price. Groupon

deals tend to teach consumers that paying full price for a service is not acceptable.

There is a right way to offer deep discounts and still have your business grow. Below are the

top four tips on how to avoid getting burned by Groupon, OpenTable, LivingSocial, and other

such services.

#1 Tip: Treat discounted customers the same as customers who pay full price.

The first and most common mistake, as a business owner that has utilized services such as

Groupon, is to treat customers who have gotten these deep discount certificates like second

class citizens. Of course, they will not come back if you water down your services and only offer

them a quarter of the total menu of services. They will walk away and think, “Wow, I’m glad I

didn’t pay full price, the service stinks”.

Groupon and like services make a promise to their customers, that they are getting the same

service (not a limited or watered-down version) from your business for a deep discounted price.

#2: Failure to Reward

Yes, add more rewards to a customer who has already gotten a great deal with Groupon.

Rewards do not have to be a costly item or service, but it does need to a memorable and make

a lasting impression. For instance, if a Groupon customer does return to your restaurant during

a busy time (without a reservation), move them up on the waiting list and offer them a free drink.

Another option would be to give free mini-product samples, if they return for a second (full

priced) massage.

#3: Too much or not enough

As previously mentioned, everybody loves discounts, but if they are offered too frequently (or

too rarely) it can have a negative effect on the bottom line of your business. As an example,

after your Groupon deal has expired, cool off discounting anything (services or products) for a

while.

#4: Placing blame

It is not the customers fault or the fault of Groupon Deal that potential customers do not return to

your establishment. Remember, customers that use Groupon and like deals to come to your

business, were interested enough to purchase the Groupon deal; it is up to you to keep that

interest going. If you find that you are losing, and not gaining business after a deep discounted

deal has expired, you may want to consider re-evaluating your price point and quality of your

services and products.

Final Word:

Use Groupon Deals as part of your total overall marketing plan, to get new customers in the

door, and use the advice offered above, to get these customers coming back and becoming a

loyal client.

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Mercedes Diaz

Mercedes Diaz is a serial entrepreneur, owner of a small sports massage clinic in Boston,Ma, online marketing and advertising consultant, business visibility strategist and owner of three authority sites including Massage Therapy That Sells. She loves everything business and is happy to share her knowledge with anyone who asks.

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