Updated March 1, 2025
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Tips to Structuring Groupon Deals for Success
Groupon email marketing (and other similar services like AmazonLocal and SweetJack) can be a heroine for businesses looking to get the word out about their products and services. However, Groupon can be like heroin if not done right. I’ve seen small businesses, in the quest of getting a much-needed cash infusion, get hooked. They, in essence, are stealing from their future to pay for their now. Once they get into the cycle, it’s hard to get out. Don’t get me wrong, I don’t think Groupon is an evil drug. You just have to structure your offer in a way so it’s a win-win-win (a win for your business, a win for Groupon, and a win for the purchaser).
So here are 3 tips to make sure your Groupon deal is a strategic online marketing move:
1. Know Thy Audience
By their very nature, purchasers on these types of email lists are looking for deals. They are specifically looking for below-market rates. They are cherry-pickers and price-sensitive. In many instances it will be difficult to up-sell or cross-sell to this audience on full-price products and services. If you can live with a low conversion rate, where these one-times become regulars, then great.
2. Analyze the Price Point & Limit the Deal
50% will go to Groupon. Period. If you can’t cover your cost per unit with the remaining 50%, then don’t do it. Don’t delude yourself in that you can make it up in volume. Math just doesn’t work like that. If you’re banking of up-selling and cross-selling, see the previous tip. Run the numbers by taking into account your costs and make an educated decision regarding price. Yes, some purchasers may not redeem their vouchers… but what if the majority does? Only you can analyze what’s best economically for your business. Then put firm limits on the deal. Don’t be bullied into an offer that just doesn’t make cents 😉
3. Support Structure In Place
Be crystal clear on the purchasing process and how vouchers will be redeemed. If you don’t have that in place, you run the risk of overwhelming staff and frustrating first-time customers. You’ll also want to make sure you have your online marketing structure in place (e.g., CRM, MailChimp, Constant Contact, Facebook page, etc.). Once purchases come rolling in, there’s tracking and entering the information into your systems. If you’ve got holes in your online marketing process, you’re wasting this opportunity.
Used wisely, Groupon and similar discount delivery systems can be a boon to your business. I suggest looking at it as a short-term way to increase brand awareness. If it’s a quick-fix to bring in fast income, then there are more pressing and underlying issues that need to be addressed.
Used Groupon to promote your business? Have any tips you’d add to my list?
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