Groupon clones are popping up everywhere.
But the fact is that discounting DOES NOT build your business!
I think everyone agrees, Groupon and LivingSocial are coupons on steroids.
And if your a Groupon/LivingSocial coupon user, it's a pretty cool deal huh?
But, if you are on the business side, oh boy!
For over a year now, I have been warning our clients of the perils of using Groupon/LivingSocial and educating them in the proper anatomy of creating a better Groupon/LivingSocial offer.
I am such a strong advocate for these business owners.
I did finally figure out why a nurse anesthetist would choose to build a business (now with 6 offices) that helps small business owners to be more successful, and it finally dawned on me while vacationing in Las Vegas and I was able to spend some time with my Mom and Dad, and a number of my aunts and uncles ( a sort of family reunion) and I realized all of my family members owned their own businesses.
I am sure it is why I am so enthusiastic.
But please, understand that I am not bashing Groupon/LivingSocial as much as I am sounding the siren for business owners to beware, be careful if you will, because the Groupon/LivingSocial math is skewed.
However, this post isn't about how dangerous a Groupon/LivingSocial deal can be to an average business, and how doing business with Groupon or LivingSocial is more like borrowing money from a loan shark, it is about finding these business, whom are already vested in doing business with Groupon or LivingSocial and have already pulled the trigger on their offer.
The idea is simple.
You find these deals and approach the business owners with an offer to help them capture each couponers contact information, in order to attempt to monetize them in the future with follow up offers.
A Rice University study showed that only 60% of the businesses surveyed would use Groupon again (compared to Groupon's claims of 97%) but what is most troubling is the chances of a Groupon or LivingSocial couponeer of returning to a businesses they used a coupon at, are slim to none.
This is where you come in like a knight in shining armor.
You see, the Groupon and LivingSocial programs do not provide the business owner with emails nor phone numbers of their newfound customers, and this is very strategic on Groupon and LivingSocial's part in an attempt to have the merchant continue to use Groupon or LivingSocial.
Groupon and LivingSocial want to remain the Kings and keep access to their list. I am sure you have heard before, the money is in the list? Well, there you go.
So, the idea is to contact these business owners as their offer goes live.
Time is of the essence and talk about having a sense of urgency built into an offer.
So, you simply optin to Groupon and LivingSocial offers (you can use a coupon aggregator like www.yipit.com) and each day, you call the businesses with new offers.
"Hi, my name is _____ with Maximize Groupon, may I speak to the person who is running the promotion today?"
This question gets you through the gatekeeper without having to answer any questions and puts the owner or at the very least, the general manager immediately on the phone.
"Hello, owner, my name is ______ with Maximize Groupon. Crazy exciting to see the number of Groupons sold so far isn't it? I see that you have sold X so far (you simply have the Groupon page open so the numbers are at your fingertips). Well, our company works with local merchants across the US that are currently running Groupon promotions and we offer an automated system for you to capture and connect with your customers at the exact point of sell, when they come to redeem the Groupons. You then have an effective way to contact them after the promotion. You know, to run your own offer, and keep all the money.
How does that sound?
I want to send you a quick one minute video that explains our program. What's a good email for you?"
Then you send them an email with a short video that explains it all.
Obviously, I am not going to give away exactly what we are using, but in doing our competitive research we did find a company that has a similar model and is using these videos, which are pretty good at explaining.
Please, do not COPY, but rather model.
What we are offer the businesses is a CMS system, that allows the owner to follow up via email and SMS (text messaging) and understand, you will not be selling, for example, text messages for .03 cents each, that is just NUTS!
95% of the clients we sign, join for a package that boasts 500 subscribers (they do not believe they would ever have more than 500 subscribers) with the ability to send one email and text message every two weeks for $147 a month. We do charge a $95 set up fee as well.
Currently, we only have one telemarketer/closer doing this, but he sells on average 5-8 of these per day.
You do the math!