Be Your Own Groupon
If you’re reading this, you’re probably familiar with Groupon, or Living Social, or any of the other coupon-based email marketing businesses that have popped up recently.
If you’re not, the concept is pretty simple: your business offers a deal on a product or service, Groupon (or whomever) distributes that deal to its subscribers, then those subscribers can purchase the product or service for a limited time. Those who buy the deal then redeem it directly from your business.
The business principles are also pretty simple: customers get a good deal, you get the Groupon’s distribution channel and extensive reach, and Groupon gets a portion of the sales (usually 50%, but they do allow some negotiating based on the product/service).
It’s the classic gotta-spend-money-to-make-money principle: you discount something and then split the revenues, but hope you’ll be exposed to a wider audience, earn repeat business, generate some good reviews, etc etc, for your investment. Additionally, because the customers pay immediately, the deals may expire or the customer will forget to use them, and then all those sales just become free money.
It’s a system that has proved itself time and again, and we’ll probably see more Groupon-like businesses pop up in the coming months.
Which leads to the question: why can’t you distribute your own deal, and not have to split the revenues?
You can! Your reach may not be as extensive, but if you’ve done proper social media marketing you probably have a fair amount of facebook and twitter followers–make status updates and tweets promoting your deal. If you collect customer data, you may even have a database of emails and can do e-mail marketing to distribute your deal. And if you’re willing to spend a little, you could always run a pay-per-click advertising campaign to promote your special on each of the major search engines.
Next, you’ll need a way to collect payment. Easy enough–set up a landing page on your site for the deal and integrate it with Google Checkout to process the payments. The interface is simple and the fees are on par with industry norms.
Then all that’s left is some web development to provide printable coupons, integrate a timer, or whatever else you need to pretty up the offer.
Make your status updates, tweet, send emails, post ads and link them back your deal’s page, and voilà, you are your own Groupon! You’ll also have the framework in place and can repeat the process without having to go into Groupon’s long queue (as long as 6 months), or compete with other similar businesses.
Sound like something you’d like to try, but don’t quite have the technical know-how? Contact Localis and we’ll be glad to help.