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Has Groupon changed things for you guys?

by TyBrown
13 replies
I don't do offline consulting but in looking at the crazy success of groupon, livingsocial, etc. I'm wondering if this has changed things for you offline marketing consultants?

I don't think most business owners think about the lifetime value of a customer. When it comes to getting their offers on Groupon, though, I've got to think that they are, for the first time, being educated about thinking about the lifetime value of clients.

From what I understand Groupon is going to have you discount your offer by 50% and then they'll take 50% of the gross leaving a business with roughly 25% of their normal take. I assume that Groupon reps sell this by talking about the lifetime value of getting people in, turning them into clients and therefore making longterm cash even with a short term loss or break-even.

So I'm wondering if businesses are now more savvy when you consultants go in and talk with them about how to understand how to market based on lifetime value? Have you noticed any change?
#changed #groupon #guys #things
  • Profile picture of the author jrobconsult
    Have you bought any groupon, living social or deals of the day? My wife and I have bought over 20 and would you like to guess how many small businesses ask for our contact info? That would be 0. Groupon is a wonderful opportunity for us to make a lot of money and I am going to ride that train.
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    • Profile picture of the author TyBrown
      Originally Posted by jrobconsult View Post

      Have you bought any groupon, living social or deals of the day? My wife and I have bought over 20 and would you like to guess how many small businesses ask for our contact info? That would be 0. Groupon is a wonderful opportunity for us to make a lot of money and I am going to ride that train.

      Actually I haven't bought any of them although I think my wife has bought some. I'm shocked, though. Seriously? No one has made an attempt to monetize you beyond the deal you bought? Nuts.

      So what is your plan for capitalizing on their lack of action?
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      • Profile picture of the author jrobconsult
        Originally Posted by TyBrown View Post

        Actually I haven't bought any of them although I think my wife has bought some. I'm shocked, though. Seriously? No one has made an attempt to monetize you beyond the deal you bought? Nuts.

        So what is your plan for capitalizing on their lack of action?
        I have a 3 part approach. The easiest is to contact small business owners who are currently running a groupon or daily deal and create a sense of urgency.

        The second part is to contact owners who have conducted campaigns and see if they would be interested in answering a few questions for my marketing book.

        The third is to make me slightly famous for small business owners before they run a daily deal or groupon and contact me for info.
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  • Profile picture of the author TyBrown
    Originally Posted by Mike Grant View Post

    It's made prospecting that much easier.
    Just curious, how do you use it for prospecting? Do you go in asking if they've done Groupon? Ask them if they've considered Groupon, etc.? Do you use those types of questions as ice-breakers?
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    • Profile picture of the author jimbo13
      I can't write for Mike as I don't know him but why would a business sign up to Groupon?

      Because they want business.

      So if you sign up for Groupon, technically they are e-mailing you three businesses a day who:

      a. Want more business
      b. Want it now
      c. Are prepared to pay for this new business

      Are they not the sort of customers you would like?

      Dan
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      • Profile picture of the author omurchu
        Originally Posted by jimbo13 View Post


        Are they not the sort of customers you would like?

        Dan
        Hey Dan

        Yes these are the customers we would like - the question is "what is the best approach to capitalise on them?"

        How about ringing them and adopting a "survey" approach? ie. I am doing some research for a client on using Groupon and would like your feedback on your experience with your campaign?

        Then leading to discussion on how to follow up and get return visitors. Hopefully getting a response from suggestions and then a client.

        Frank
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        • Profile picture of the author TyBrown
          Originally Posted by omurchu View Post

          Hey Dan

          Yes these are the customers we would like - the question is "what is the best approach to capitalise on them?"

          How about ringing them and adopting a "survey" approach? ie. I am doing some research for a client on using Groupon and would like your feedback on your experience with your campaign?

          Then leading to discussion on how to follow up and get return visitors. Hopefully getting a response from suggestions and then a client.

          Frank
          That's what I'm getting at. I'm not in this space, trying to sell to business owners, but I'm wondering what you consultants are or can be doing to sell to these business owners.

          I wonder if a simple script where you tell a business owner you can increase their Groupon profits by up to 50% or something like that would work?

          I would think that there is an enormous amount of work to be done following in the wake of these daily deal sites in showing business owners how to think about lifetime value that a consultant could make a killing by just going after this one niche.
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        • Profile picture of the author jrobconsult
          Originally Posted by omurchu View Post

          Hey Dan

          Yes these are the customers we would like - the question is "what is the best approach to capitalise on them?"

          How about ringing them and adopting a "survey" approach? ie. I am doing some research for a client on using Groupon and would like your feedback on your experience with your campaign?

          Then leading to discussion on how to follow up and get return visitors. Hopefully getting a response from suggestions and then a client.

          Frank
          Surveys are one way or you could tell them you need info for an article or for your marketing blog. The soft approach is much better than being a salesperson.
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  • Profile picture of the author Mike Grant
    Wtf, why was my post deleted?
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  • Profile picture of the author JobBoards
    I have gotten mostly useless emails
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  • Profile picture of the author Chris Rivers
    Not really.

    Groupon only works for a small percentage of businesses because the back end has to be properly set up in order to actually make profits.

    So, many business owners lose money and they begin seeking other strategies, which leads them right back to us marketing consultants.

    I find that the type of business owner that uses Groupon is definitely more open to other online marketing strategies, which is definitely a good thing for us consultants.

    Thanks,

    Chris
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