Bargain Hunters: The Pros and Cons of Groupon and Groupon-ish Sites.

Howdy Gorillas buds,
Needless to say, the economy’s got us saving and penny-pinching like pack-rats, and the Social Media world has adjusted to accommodate our new found method of living.

If there was any doubt about the state of affairs then TV (which is typically slower at catching up) is a tell-tale sign that it’s a frugal world out there. My newest Reality TV show craze is, surprisingly, TLC’s, “Extreme Couponing“, a show about shopping maestros who acquire purchases with discounts ranging from 90 to 101% (legally).

We have witnessed an exponential growth in the last few years in online coupon services like Groupon, LivingSocial and others. These services have provided consumers with discounted services and products from restaurant deals to haircuts and dog-grooming. But it’s not just consumers drooling at the opportunities. Groupon and similar services have provided Small Businesses with an avenue to reach millions of people segmented by geography, lifestyle and more. With 37 million subscribers, it’s a marketer’s fantasy.
IT’S A GOLD MINE!!! or is it?
Here are four Pros and Cons to advertising with Groupon and other online coupon services.
Pros
1. Increase exposure
2. Drive website traffic
3. Increase Word-of-Mouth
4. Opportunity to collect email addresses
Cons
1. Cheapen your brand
2. Possible loss in sales
3. High cap rate (You may be required to offer a high number of discount packages)
4. Bargain Hunter shoppers (one-time customers)
Groupon and similar services have and continue to yield great results for Small Businesses, however, it’s not to be entered without considering a few important factors:
- What is your marketing goal?
- Can you suffer a loss? How much of a loss?
- Are you prepared to provide the very bestEST, most AwesoMEST service/product to those bargain customers? Because if you don’t, it’s the last you’ll see of them.
- Do you have a calculator? Don’t forget the cut for ad rep.
Don’t be discouraged, online coupon services are a great way to get exposure but beware! they are not the magic bullet.
Until next time, keep on hunting.
KBG~
www.keyboardgorilla.com