Are Discount Websites like Groupon a Good Strategy for your Business?

Given the turbulent times, it’s no surprise to see many Minnesota businesses looking for some ‘quick wins’. One common short term focused idea are discount platforms, such as Groupon.

And that strategy will likely come back to bite you soon. Here’s why:

Given the heavy discounts provided to Groupon customers, a successful campaign requires you to:

• Up-sell items not included on the voucher
• Encourage repeat sales.

Both are a challenge, as Groupon customers are notorious for not wanting to pay anything above the voucher value.

Here are 3 other ideas to generate more customers in 2021:

1. Tap into your existing database

A great asset for existing businesses is their database of customers. Some of these customers are active, but many are dormant. Do you know how many of the customers in your database are inactive? If not, now is a good time to understand this number and reach out to them. You can contact them with a simple letter, postcard or even a personal phone call. A more personal interaction can lead to a greater impact. You could provide a telephone script for your team and during quiet times of the day, they may call these customers to invite them back. A client of mine tried this and they had a boost in sales by 20% that month!

2. Know your marketing numbers

At a time when many businesses are scrutinising their expenses, it is tempting to roll back the marketing budget (if there is a budget at all). However more than ever before, you need to be focused on getting new customers in to preserve your bottom line. If you do nothing, chances are your sales will contract at a faster rate! Get to know what marketing works best for you by tracking your numbers and making sure you are getting the best bang for your buck! If you don’t know your Lead and Customer Acquisition Cost, use the calculator in this post to help you identify it: Role of Client Acquisition Cost in Your Marketing Strategy.

3. Embrace the internet

Regardless of your industry, make sure your website represents your brand, personality and values. Representing them is more than just stating them! If you are focused on delivering a personal service, then make your website is the first place where it feels personal. Simple videos introducing your team is a good start. Once you feel more comfortable, you could have more in depth videos showing your latest product range or satisfied customers. All of these things build up trust before the customer ever contacts you.

There is no doubt that the short term future is still unpredictable. However, we can take inspiration from the words of Alan Kay - “The best way to predict the future is to create it."