May 19, 2016
4 Tips to 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
#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
#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
#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.
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
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