What’s the big deal about Groupon.com? Considering all the recent hype that Google might want to buy them for upwards of 1 to 2 BILLION dollars something is up.
But if you are planning on being a Groupon merchant, here is one strategy you MUST follow in order to make this advertising method work for you.
If you’re not familiar with Groupon here are two interesting articles that merchants need to read.
> Inc. Magazine on Groupon
> The New York Times on Groupon
So let’s say you decide to use Groupon to advertise your business and acquire new customers, how can you make it pay?
By sending a Groupon Daily Deal, you are going to generate new customers–sometimes more than you can handle even.
Business A: Groupon with no merchant email support.
Let’s say 497 people take the Groupon deal and you now have a potential for 497 new customers. And say 400 redeem the coupon, you’ll earn the $97 the coupon for each–$38,800 (less the Groupon split of course)
Business B: Groupon with full merchant email support.
Same as above but now when the 400 new customers use your services you add them to your email marketing list. You now have 400 new opportunities to upsell to another product, invite them to return for more services or invite them to your next event.
You might sell another $38,800 just by using email and asking for an order!
This is different for every business but I’ve seen a $199 intial order create a group of qualified customers that are offered (and buy) a $7995.00 follow up product.
There can be real leverage in this two step process. Use Groupon to bring you a group of new customers and use your great service and email offers to upsell a more expensive or higher margin product or service at the back end.