Why your company SHOULD NOT use Groupon!

HOUSTON - July 22, 2019 - PRLog -- When first meeting with a potential client or even with a current one I will sometimes get asked "Should I use Groupon?". The short answer is NO!

The reason for that answer is that in the long term you end up losing more than you gain. At first you will more than likely get new customers, however these customers don't care about you, they care about the deal they are getting. For example if you have a restaurant that is selling a dinner plate for $20 then Groupon will go in and ask you to give them a 50% off coupon. If you agree they will then tell you they will be taking 50% of the asking price for that specific deal. If you add it all up you have your normal dinner at $20, take 50% off so deduct $10, and Groupon takes 50% of that, so deduct another $5. That gives you $5 for a $20 meal. That doesn't sound like a good deal now does it?

I know some of you are thinking that "it's OK this will bring in new customers who will then return because of the service or quality of the product!". Well I hate to burst your bubble but on average people who use Groupon will continue to use it next time they need a product or service. For example if someone finds Billy Joes Pizzeria off Groupon and uses their current deal, then the next week they want a pizza again, chances are they are going to remember the amazing $9.99 XL 5 topping pizza Billy Joes gave them last week. That is great! However if Billy Joes doesn't have that incredible deal where they only make $5 off a XL 5 topping then said customer will just get on Groupon again, and find a similar deal.

A great alternative is online marketing. Posting your company on social media can do wonders for your business. Facebook ads are one of the cheapest and most effective ways to bring in new customers. Having a high ranking on Google or any other search engine site is always going to bring you customers organically. 75% of people don't scroll past the first page of Google, so obviously the higher up you are the more visits your website will get. To sum things up if you are considering using Groupon to help bring in new customers then at very least have a conversation with a marketing agency and save yourself some wasted time and money!


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