In the August 17th issue of Social Media Today, author Jeff Gibbard wrote an excellent article titled, "Considering Offering a Groupon? Read This First!"
Here are Jeff's main points:
1. Groupon does not make sense financial sense for businesses. By the time you offer a 50% off coupon and give Groupon their cut, you're losing money on every new customer or client.
2. Groupon buyers are bargain shoppers. Do you want people who shop for value or by price?
3. Groupon does not build loyalty.
A Better Solution
Here’s what I think. I think offering a Groupon is lazy. No seriously, it’s lazy. You want to bring in new people? You want to get more business? Then stop focusing on these bargain shoppers; instead focus on YOUR CUSTOMERS! If you have people walking in the door already, why not turn them into your marketing department. Take some time to build a community on Facebook, Twitter or wherever your customers are and offer them the discounts instead.
Click here to read the full article - it's definitely worth the time and can save you big $$$ if you are considering adding Groupon!