How to Make Money with Daily Deal Sites (ie Groupon) in your Business

Many business owners are using sites like Groupon to increase there customer base.  Except most businesses fail to do this and end up losing money.  Take a look below:

Here is What Businesses Think is Going to Happen

  1. Biz owner creates the deal on the site giving a substantial discount (ie loss).
  2. Customers come in to get your products/services with the discount
  3. Customers love your service and product so they come back again...
  4. ...and again
  5. ...and again
  6. make money hand over fist.

Here is What Really Happens

  1. Biz owner creates the deal on the site giving a substantial discount (ie.. loss).
  2. Customers come in to get your products/services with the discount
  3. Customers wait until the next Groupon deal of a similar product (whether its your company or not) and buy again...
  4. ... and again (from a different deal)
  5. ... and again (from yet a different deal)
  6. You lose money
  7. You gain almost zero new recurring customers.

So then... How Do you Actually Keep the Customers?

Its not too tough actually:

  • Build a past customer list with their permission to contact them.
  • Make sure the customer knows your companies USP (Unique Selling Proposition - basically what separates you from the competition)
  • Did I say build a list yet?

Businesses don't often realize it, but with Groupon your basically just buying leads.  You're (the business owner) giving a product at a loss (ie... your paying Groupon) to get people into your store. 

So if your doing lead generation... you have to actually collect the leads.  This is where building a list comes in. You put your "leads" into some form of database.  Even if its as simple as an excel sheet, they need to go someplace.

That way when your a little slow and you need to bring in some business.  You send a blast (email, snail mail, text messaging) to your past customers letting them know about some kind of deal.  You won't have to pay Groupon again and the customers will actually come back!

You can do this many, many different ways. of building a list, but it NEEDS to be done.  Here are some ideas:

  • An email list - There are lots of ways to do email marketing in a non-spammy way.
  • On excel - Even this is better than not collecting info
  • Via SMS - Text message marketing is great since everyone checks their phones, they can signup almost anywhere, and its easy to do.

Call Us - We Can Help You Next time You Get Your Groupon...On

Simplistech Solutions can help with all of the above methods.  Give us a call or email us so we can help you make money with Groupon.