Using Groupon to boost retail sales
It’s clear things are improving slowly, but people are still reluctant to part with their hard earn’t cash without a feeling they are getting a bargain! Groupon has perfectly filled this gap in the market, with a simple but revolutionarily service using the buying power of the people to get offers at unbeatable prices, on everything from hair cuts to holiday’s in the Caribbean.
The way it works is simple you pledge you’re going to buy a product or service and providing the correct number of people pledge the offer goes ahead and you buy the voucher from Groupon and exchange it with the company for the service offered at an amazing price. If the number of people looking to buy the deal doesn’t reach the required level it doesn’t go ahead.
For the retailer they offer a deal and Groupon typically charge 50% of the deal in fees – quite steep but good for getting new clients through the door as a one off exercise which is exactly what one of our clients Papaya Hair Design did.
After they agreed to do a Groupon offer they came to Centonex for some hints and tips to make the most of the business generated and ultimately the new customers through the door, we organised a consultancy session with them and set about putting into place a range of measures to get the most out of their Groupon campaign.
This is what we did:
- Designed and printed a 20% off card so all Groupon clients had a reason to return to the salon and continued to feel like they were getting a good deal – in the form of a discount of their next cut – difference is the salon doesn’t have to give half its profits away to Groupon.
- We designed a database which was use to record the Groupon bookings and all of the client information plus details of when they had their appointment and if a 20% off card was given.
- We setup an account for Papaya on Centonex’s email marketing system Centmail and designed a simple branded template allowing the owners of Papaya to send all of the Groupon clients an email at timed intervals after their initial appointment reminding them to pop back in with their 20% off cards within 6 months and of any other offers available.
Amazingly Papaya achieved a staggering 407 books in 1 day from Groupon and using the tools put into place by Centonex they are able to get the best out of what would otherwise have been a lost leader – they potentially have 400 odd new clients and a new database of people to market their services to.
If you are looking for innovative ways to get new business give us a call and lets arrange an initial consultancy session to explore the possibilities – there are so many ways to get new business and Centonex already have a number of packages to boost business for fixed monthly fees.
Matthew Wofinden on 07974 303029 or email matthew@centonex.com.
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