Google used to be the primary online source for generating new customers to retail businesses. Today the market has changed and new advertising platforms have risen to take a bite out of Google’s $28 billion dollar empire. Most notably is a company Google itself recently offered to buy for a cool $6 billion dollars, that business powerhouse is none other than Groupon. When I consult with businesses and recommend they use this service to generate 100′s of new customers, their first reaction is:
What’s a Groupon?
Groupon is a group buying service, which offers daily deals to 35 million members in over 250 markets around the world.
The concept is ridiculously simple. (I don’t know why I didn’t think of it first :-) )
You the local business owner offers your product/service at a 50% to 90% discount to an X number of customers. You will determine what that x number is based on your costs and expenses. This works in your favor as you determine what’s profitable and eliminate any risk and possible loss.
Watch the quick video below for more about Groupon;
What kind of businesses can use Groupon?
Although it’s geared towards all retail businesses, the most popular currently are:
At an estimated $500 million in revenue for 2010, Groupon is poised to catapult past the billion dollar mark this year. Don’t be disappointed that I didn’t mention your industry in the list above, it’s just a list of what’s currently popular. Groupon is expanding and as more customers use the service, the demand for great savings will evolve past just restaurants & spas. More markets are opening and it’s important to position your business now and take advantage of this growth. I’m currently working on a Groupon Store for LearnAboutUs.com, so stay tuned for more details.
How do Groupon deals benefit my business?
There are a lot of great benefits to using this service, here are a few.
- Members have 24 hours in which to buy your deal of the day, giving your business immediate exposure and immediate results.
- Groupons are more fun when used with friends and they’ve done a great job of making it easy for people to pass along deals by email or broadcasting them to their social media networks.
- Groupon deals make great gifts. Customers have the ability to purchase multiple deals for friends & family members, giving you more sales from just one customer.
- Customers can print redemption vouchers or access them from their mobile phone through the Groupon App (Available for iPhone and Android). In today’s massive cellular world, this helps make the redemption process a lot easier for the customer. Nobody wants to jump through hoops to save money, no matter how much the savings.
If you didn’t hear, people complained that their recent Super Bowl ad was offensive. I believe this negative spin will actually help their business stand out, as Godaddy did when they first introduced beautiful babes selling domain names.
Take a look and tell me what you think. Is it really offensive or just smart marketing?
Now that you have a better understanding of the Groupon concept, let take a look at
How to use Groupon to get 100’s of new customers to your retail business?
Step #1: Become the featured business in your area and position yourself in front of thousands of local members.
Start off by visiting http://GrouponWorks.com and then click the green button on the top right labelled “Run a deal with Groupon”.
Complete and submit the short questionnaire about your business. Once you submit the questionaire, Groupon will take the next step and contact you to structure your deal and help get you prepared for the actual day.
This step will take some time to execute, as other businesses have also submitted a request. Don’t hesitate to follow up with their advertising department to see where you stand.
While your waiting to be featured, the next step will allow you to get your current customers immediately involved.
Step#2: Create your own Groupon Store
Similar to your own store front, minus the expenses. It’s free to use and it only takes minutes to set-up.
Create your first deal and invite all of your current customers to your Groupon store.
One of the unique benefits of having a store is that your customers can follow you and receive e-mail or mobile messages when new deals are available. To get started with your own store, you simply need to visit http://Groupon.com/merchants/welcome and APPLY NOW.
Again you will have some basic information to complete in order to create your account. Once approved you will have the ability to develop your followers and start promoting daily deals in your local area.
Can your business benefit from Groupons power? Did you learn enough to help get you started?
Please leave your comments below !!
Need help with your Groupon marketing strategy and getting new customers? Connect with me here http://JohnKoma.com