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Groupon vs. Local Lead Capture

by businessnewbie
6 replies
I have a client who is a hairstylist that I do graphic design work for who is interested in lead generation for her business, specifically 2 types of services she offers.

These services are ones that can generate more $$ than a haircut. She's looking at moving her business focusing only on these two services. One can generate $300/client and the other $150/client. This isn't a lot in other industries but it is a lot in the hair industry.

We were brainstorming some ways for her to promote and she's thinking of doing a groupon to promote these services but I wonder if local lead capture wouldn't be better. She wants to focus on working behind the chair and I think groupon, while it has millions of emails, is going to take a lot of her money.

Her starting budget would be pretty low, but would increase as her clientele increases. Her goal is to pay her sons way through college, approximately $80k and to also expand her business. She has a year to start building her clients and shifting her model.

Before anyone suggests I do this for her, I'm not interested in this aspect. I do graphic design part time and am happy with my income and the time I spend doing it. I'm not ready to increase my workload.

What do you think of her utilizing groupon vs a local lead capture? How do we even begin finding someone who can help her grow and work within her budget? Thanks for any advice!
#capture #groupon #lead #local
  • Profile picture of the author ThePromotionalGuy
    Greetings businessnewbie,

    Instead of Groupon or local lead capture, introduce this service(s) to existing customers first. Test it on them.

    I would recommend she mail them a direct mail piece introducing a VIP service to her loyal clients. Roll it out with a XXX price, but for a limited time only a select few will get it at XX price. Also make it time sensitive.

    This way she can test and measure her results. If she finds their is a market demand, then she can look at the lead capture options.

    Do note: existing clients will give her a different result than new customers. She may find a greater desire from her regulars. Please advise her of this.
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    • Profile picture of the author businessnewbie
      Originally Posted by ThePromotionalGuy View Post

      Greetings businessnewbie,

      Instead of Groupon or local lead capture, introduce this service(s) to existing customers first. Test it on them.

      I would recommend she mail them a direct mail piece introducing a VIP service to her loyal clients. Roll it out with a XXX price, but for a limited time only a select few will get it at XX price. Also make it time sensitive.

      This way she can test and measure her results. If she finds their is a market demand, then she can look at the lead capture options.

      Do note: existing clients will give her a different result than new customers. She may find a greater desire from her regulars. Please advise her of this.
      Thanks for the great response! I brought his to her, she said the services are new, and has offered this service to her current clients with no takers. She wants to offer to a new client base.

      I suggested that she try a demo night possibly? I also suggested she consider Facebook ads, but she's hesitant because she doesn't know exactly how to do them. She did start an Instagram acct focusing pics on one of the services, but until she gets more clients she can't properly promote either.

      What could she do to attract those new clients outside her current base, who are primarily older women and wouldn't receive this service.
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      • Profile picture of the author animal44
        Originally Posted by businessnewbie View Post

        ... has offered this service to her current clients with no takers.
        My starting point would be to ask why?

        Why her existing customers won't buy?

        And, more importantly, what would make them buy?

        Get the answer to that before she spends any money...

        Talk to her existing clients to find out their perception of the service.

        It may be it's simply out of their price range... or... it may be they simply cannot see the value. Or a thousand other reasons...

        Talking to prospects will give her the insights she needs to properly sell this. Find out what would make them buy. Find out the language they use to describe this. Find out how to describe the service in terms that would make them part with $300. Then it could be as simple as running an ad or distributing leaflets...

        As UMC says, Groupon attracts price conscious buyers who tend to have little loyalty.

        I would go with the JV with other local businesses. This would be a low cost way of finding out if people are prepared to pay the price, without up front advertising costs.

        A demo could also give insight at a low cost. Ensure that she gets feedback from the attendees...
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  • Profile picture of the author umc
    Groupon attracts people that are shopping on price alone. Those people aren't necessarily going to come back and pay her high prices for a high value service. More than likely she'll attract people that would never pay that much for whatever it is or just never be able to afford to have it done, but they might come in for the cheap price that she'll be forced to offer, of which she'll get very little. If she does something like a Groupon she'll also have to have a way to gather information from these people on her own when they come in to create a list from for repeat visits, as Groupon doesn't give you their list that they build off of your offering, from what I understand.

    I'm with TPG above. Offer something to her existing customer base. Maybe even give them a reasonable discount and let them bring a friend in for that same discount, as more than likely they'll hang around people that have the same values.
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  • Profile picture of the author umc
    Where do the people that she wants to attract go? Go there.

    If it's a new and cool or trendy service, who are the local influencers in that arena? Reach out to those people and offer them free service in return for promotion.

    Is there some other service that goes well with it that the people she wants to reach would be having done already? Reach out to those service providers and do a jv deal with them.

    I think Facebook ads could be really good. Learn how to do it. It isn't rocket surgery.

    Are there Facebook groups or something locally that she could join and start to provide value in? Join them and show that she knows her stuff.

    Just some ideas.
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  • Profile picture of the author DABK
    I'm with Animal here.

    Because: nobody may want this service.
    Because: the people who want such a service are not going to come to her place.
    Because: the people who want this service aren't willing to pay for it.
    Because: she's offering it wrong.

    She needs to know if there are people who are willing and able to pay for those services.

    Me, I have yet to find one person to purchase my DABK Happiness Fund tickets. I've been offering them for the low, low price of $4.99 for over 25 years and have to have one taker.
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