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What You Need To Know About Advertising On Groupon Milton Keynes

For businesses that are not experienced in marketing, advertising on Groupon Milton Keynes runs with it many risksGroupon has experienced some astonishing success over the past 4 years, from being a complete start-up business some 4 years ago to today being valued at several billion dollars, but is Groupon’s business model fundamentally flawed and what does it really offer for local businesses advertising on Groupon Milton Keynes and elsewhere?

I’ve been meaning to write a blog post on this subject matter for some time because as a seasoned marketer in social, mobile and local internet marketing, I’ve been expressing grave concern for some time on Groupon’s business model and whether it helps local businesses at all, which I will explain in this short article.

Groupon’s business model is fundamentally about leveraging massive consumer demand that exists for discounts, deals, special offers, voucher and coupons. The emphasis is in connecting these bargain hunters with businesses that offer huge discounts as an enticement to get new business and customers, often on a ‘hope and a prayer’ that those customers will continue to use their services or buy their goods once they’ve bought once.

However, as I will demonstrate to you, unless you have a smart, trackable marketing set-up to capture the contact details of your new customers and thereafter continue to reach out to these customers in order to develop a relationship, you are going to find that you have received nothing at all for all the money that you’ve invested with Groupon. And for some businesses, especially young businesses, it can end in tears because for many businesses, advertising in Groupon Milton Keynes or elsewhere is a loss maker.

Here’s an extract on an article I found on the BBC which tells of one business owner’s experience of using Groupon, which incidentally echoes the experience of many businesses around the world.

Advertising On Groupon Milton Keynes – Buyer Beware!

Massive, loss-making deals have been part of marketing strategies for many a year – but always with the underlying hope that once a customer is “in”, they may stick around and buy something else or, at the very least, come back again another time.

There is also the chance to upsell – that is, offer extra services on top of the voucher-specific deal to turn a loss-making offer into a positive one.

But for business owners like London-based Hannah Jackson-Matombe, this just simply isn’t happening.

“It’s been a disaster for us. We will never do a Groupon deal again,” she told BBC News.

“They’re dangling a carrot that’s practically irresistible if you’re a new business and you’re desperate to get out there.”

Her company, Spotless Organic, offered an oven cleaning service for £19, down from its usual price of £99. Three hundred people purchased a coupon, of which so far around 150 have taken up the offer.

Under its terms, Groupon (like most other deal sites) keeps the revenue from unclaimed vouchers unless the buyer requests a refund.

Of the ones that do get claimed, the money made is split 50-50 between Groupon and the business.

“Their approach is to get you excited about the coverage,” Ms Jackson-Matombe said.

“They say they’re going to get you 300 more customers. You’re going to be able to upsell your business. But if you’re suddenly inundated, you have no chance to upsell anything.

“You basically work for Groupon, delivering something that only they benefit from.”

She estimated that, on average, she lost £35 on each of the 150 or so oven scrubs performed so far – with next to no return custom.

“We’ve had very good feedback from customers on the whole. But if you’re paid £20 for a service that would normally cost £99, you wouldn’t do it – I wouldn’t do it!”. Read the full BBC article here.

Ms Jackson-Matombe’s experience of advertising on Groupon is not unique. The trouble is that unless you have a lot of marketing experience and know what to do with new customers and clients, you are likely to get your fingers burnt.

But there is another more fundamental and deep routed weakness in marketing on Groupon Milton Keynes or elsewhere that I want you to be aware of.

Before making a decision on whether to do any advertising on Groupon Milton Keynes, think about this. If your existing business model is focused on attracting bargain hunters and potential customers that don’t want to spend much money on the goods and services that you offer, then Groupon can work very well for you. That’s assuming that you are able to make decent profit after your heavy discounting, and you have in place a lead capture marketing strategy that allows you to follow through with these new customers.

However, if your strategy is to get as many people through the doors with discount incentives in the hope of selling them further goods and services, in order to make a profit then I have this word of warning.

Be very carefully how you position your business because it influences the type of customers you will attract. Do you want to be perceived as the low cost bargain service provider or supplier of goods? Because that in the main is what you are likely to get with advertising on Groupon Milton Keynes, or wherever you are located.

Groupon is a very well known brand and has a strong consumer following. It’s customer base are bargain hunters and you need to understand this. When you are advertising on Groupon Milton Keynes don’t expect to get any branding value from it, as Groupon shoppers are in the main “Groupon Shoppers” looking for discounts. So don’t be too surprised if after these shoppers have got their discounts from you that you never see them again because consumer will only remember that they got their great discount from Groupon not from you the actual business.

If you are a local business eager to generate more leads and customers, give us a call and we will be more than happy to discuss marketing strategies that’s best suited for your business.

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