Home – New Forums Marketing mastery Coupon Websites like group on, living social etc

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  • #986867
    stewartr
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    Hi crew.

    Just wondering if anyone had any advice or past experience to get customers/advertising through these websites

    I’m thinking about contacting one next week for my new service based business which relies on regular weekly customers which are locked in.
    (So thought this was a good way to advertise on a large scale and get people in the door to trial and hopefully stay with the service)

    I understand that using this method can cheapen your brand (as I’m not really worried about this at the moment as I need initial customers and money coming in)

    I also know that this method is not a way to make a good amount of money but using this as a way to get customers in the door.

    Looking for the good and the bad

    #1159929
    MissSassy
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    Unfortunately I have not heard any good reports.

    It seems that while you may sell A LOT of coupons, the clients will only ever be one off users rather than long term customers.

    Sometimes you have to give these things a go just to see – but I am yet to hear about a happy and content client that would do it again for their small business.

    #1159930
    Dave Gillen – Former FS Concierge
    Keymaster
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    I also know that this method is not a way to make a good amount of money but using this as a way to get customers in the door.

    I think there are a lot of bad experiences because people don’t understand this concept, but you seem to get it.

    Getting a customer in the door for the first time can be the hardest part of running a business (and expensive). If you have the type of business where you feel you can convert 1-time customers to repeat customers, then I’d say go for it.

    If you’re just “hoping they come back” then it probably won’t work out.

    Best of luck!

    Dave

    #1159931
    Anonymous
    Inactive
    • Total posts: 40
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    There’s no single answer of “its a good idea” or “a bad idea”.

    Businesses that are “too small” or want to run a really small test may be rejected because the deals aren’t big enough for some sites.

    Pros –
    I’ve spoken with a number of businesses that have had huge success with it.

    Cons –
    One company I know of found themselves being used and abused by low quality customers just out for a cheap deal and zero loyalty. Mgmt didn’t keep their finger on the pulse; they didn’t keep an eye on the customers and get feedback from staff. It took them waaay too long to realise this. They ran their campaign for many months and seriously degraded their brand.

    Tip –
    I get this question fairly often.
    My response is to “know your numbers”. By that I mean really know how much each unit of X really costs you (staff, tax, everything), and know how much increased capacity can really handle.
    If those signals are go, then keep your finger on the pulse.
    Look at more than just revenue, are these people becoming repeat customers? Are they the kind of customer you want?

    The horror stories that make the press typically are by business owners that make such a good deal they get swamped, then buried by the costs of trying to meet that demand.

    As to whether it’s right for your industry/business – call some of the current advertisers in your category currently doing it!

    #1159932
    ShanDesign
    Member
    • Total posts: 67
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    Hi,

    I think that those sites are generally better for retail or product based businesses. It is easy to work out a cheap price that still covers costs.

    For service based businesses, particularly B2B, time can be the biggest factor. You run the risk of spending hours on clients that aren’t prepared to pay full rates when you could be out getting full paying clients.

    That’s my two cents :) Best of luck!
    Shannon

    #1159933
    Gail @ VAABS
    Member
    • Total posts: 28
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    I had experience in a previous accommodation business. What we found was that the deals attracted those who were very price conscious. It was virtually impossible to upsell once they were at our property for 3 days and we had no repeat business despite offering another incentive for them to return.

    I’m sure it depends on your business model and what you are selling but I’m inclined to agree it is more suited to “one of product purchases” than services and unlikely to bring repeat business.

    Cheers
    Gail

    #1159934
    Brooke Curline
    Member
    • Total posts: 120
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    stewartr, post: 184585 wrote:
    Hi crew.

    Just wondering if anyone had any advice or past experience to get customers/advertising through these websites

    I’m thinking about contacting one next week for my new service based business which relies on regular weekly customers which are locked in.
    (So thought this was a good way to advertise on a large scale and get people in the door to trial and hopefully stay with the service)

    I understand that using this method can cheapen your brand (as I’m not really worried about this at the moment as I need initial customers and money coming in)

    I also know that this method is not a way to make a good amount of money but using this as a way to get customers in the door.

    Looking for the good and the bad

    Hi
    I deal with these sites for product and know exactly what they charge.
    Be very mindful that you will be expected to offer a significant discount on the normal cost of your service and then they will expect to make 40-50% GP from each sale. Unfortunately they take a long time to pay also – be wary !
    Kind Regards
    Brooke

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