Groupon?

[deesseboutique]

Steve - I read the first page of this thread then skipped ahead to the end (sorry 38 pages was too much to wade through). I have a couple of questions.

I too joined Groupon back in November - applied to be featured (I am a gift shop and this was going into the Holiday shopping season, figured I had a good chance). While I was waiting to hear back I set up the "Groupon Store" feature - and even posted a deal. This part requires you to promote it yourself though, you get no perks or access to the millions of Groupon users, other than the deal resides on the Groupon server. Thing is though, it is very HARD to find it on Groupon. There is no search feature (can't figure out why), no link to Shops, or Merchant listing, nobody would know I was there unless I sent them a direct URL to the shop.

Results were poor - only sold 2 - but I also didn't promote it heavily, I wasn't sure exactly how it would work out.

Then - a few weeks later I get an email saying I am not qualified to post deals yet - that I now need 25 users to "follow" my shop (not on FB but on the Groupon site) before I am allowed to post deals.

Is this what you meant by a "side deal" ? Did you post a deal through your Groupon Store ?

Eventually I got a "sorry no deal" email saying they are just too swamped with requests. Sigh ...

It is a shame too, because I have two locations and lots of interesting merchandise.

Angela
Deesse Boutiques

[deesseboutique]

Oh - and the other question was - how did you do your first Groupon ?

Did you apply to be featured ? How long did it take to get on ?

PS - I am in the Chicago area too, outer suburbs so my deal really would appeal
to a decent geographic area and I see other shops in my town getting featured.

The thing to remember with Groupon is that it really isn't for a business that can't handle many multiple sales (like the nail salons that had people coming in groups of 8 wanting to all be done together and they didn't have the capacity).

The numbers can get pretty nutty. I see a catering place a block from me had a deal on a 1 lb tray of brownies ( I bought one ... yea ) and they specified that you had to call the order in ahead and arrange for pickup. They sold 774 of them.

I guess they figure they can bake them fast enough to accommodate the orders that come through each day (I haven't called on mine yet) if they have advance notification. Still - you have to be prepared upfront with the supplies and manpower to fill those 774 orders. You can put a limit on your offer - so key it to what you know you could produce at the outside.

I look at Groupon as a "loss leader" type of advertising. You give out a super deal to get them in the door, you have great stuff to sell / offer and that makes them a permanent customer without the 1/2 off deal next time around.

Now if I can just get featured ...

[deesseboutique]

On the Groupon Store deal - where you promote your own, the cut was 30% of the sale.

[Steve B]

Hi Angela - I never heard of the Groupon Store. I don't think they have it in our area. Louisville is smaller and they don't have all the features in our area yet.

The Side Deal was a deal that was in addition to the main deal of the day. It was much smaller and listed on the side of the page. It ran for three days instead of 1.
We sold 34 of them when we were the side deal in October. Then, a couple months later we were the main deal, but it was on X-mas Day (which was also a Sunday) and we sold 66. Of the 100 that have been sold only half of them have been redeemed. Of the ones that have been redeemed, about half of them have continued as customers. It's perfect for a repeat business like my dog and cat food delivery. I'll probaby have some of the customers for many years as people are very loyal to their dog food.

I applied for the Groupon deal by filling out their form on-line - then I got a phone call within a couple weeks. I would imagine your market is going to be much harder to get listed since you have so many more businesses.

FWIW - I would think a gift shop would be a terrible fit. I think you would have too many people wanting to spend the amount of their Groupon and nothing else, then you'd never see them again. I would think you'd have to limit the purchase to some type of merchandise where you had a particularly good mark up. I think it's a great fit for some businesses, but not all. A friend of mine has a pottery factory where a customer can paint their own pottery. It's a large local institution that's been in business over a hundred years. She gave a half price Groupon for a tour of the factory. The tour doesn't cost her anything, and many people decide to buy something at full price on the way out. She sold 1,200 and it's extremely profitable for her.

[D. Meyers-Jspot]

Groupon is an interesting model, and can be very useful for some businesses, although expensive. Things are moving more towards mobile and location-and the new self serve platforms like the one we're working on can provide a more affordable option. The other plus is they can be better for customer retention and loyalty, while still proving new customer exposure for those looking for your offer in real time.
Cheers.

[mobile resolutions]

@Steve and anyone else interested

Groupon and Living Social are great ways to get traffic to your business, but they don't help you capture customer info. Groupon and Living Social get the customers email address, but last time I checked that info was not passed on to the business owners. How will you keep connecting with the new customers and bring them back for repeat business once they use the Groupon or Living Social Offer. Adding mobile to your current marketing campaigns is a great way to capture 100% permission based customer cell phone numbers to send them coupons and specials you have in the future. Another plus to using mobile is there is no middle man taking 40% or 50% from an already discounted sale...all monies go to you the business owner. Mobile campaigns create a win-win situation businesses increase sales and customers get mobile coupons and other info directly from the businesses where they want to spend their money.

[deesseboutique]

Actually Groupon would be a good fit for my business. I also manufacture most of my products, and the others are high enough margin that it would be ok.
Also - I sell a lot of "consumable" products like soap, candles, lotion and perfume and once I get someone to try the product they are pretty hooked due to the quality and customization I provide.

Getting the new customer through the door the first time is the hard part and that is what Groupon can do for me.

Angela

[Steve B]

Angela - it sounds like you do have a perfect situation for a Groupon type of campaign.

Groupon does not give you anything other than a name of the people that bought your Groupon. BUT, when they call me and want to get their delivery I get all their contact information and stay in touch with them as appropriate.

[CloptonCapital]

Groupon is a great way to get MORE business but you usually have to give the farm away. Years ago Wal-Mart had a $2 per gallon pickle promotion. They wanted to show the World how low prices could go. The sales of the pickle company's product went through the roof but they lost millions simultaneously. Their sales at other grocery stores tanked and they depleted their supply of new product.

The moral of the story: don't give the farm away

[deesseboutique]

Yes, but, this is pretty much a "one time" loss leader giveaway. Obviously people know they aren't going to get a Groupon deal every time
they walk in. As a consumer though, it is a great way to try out a new store, restaurant, caterer, or service and if they provide excellent service and value for your dollar you will continue to patronize them.
If your experience is just so-so then maybe not.

I am banking on them having an exceptional shopping experience and getting some product into their hands is a guaranteed good chance that I will get a repeat customer out of it because I provide something the big boxes don't and can't provide.