Is Groupon or what I've proposed as an alternative a more targeted approach?
Is Groupon or what I've proposed as an alternative a more cost-effective approach?
You said to stop thinking of Groupon as a sales tool and to start thinking of it as an advertising vehicle. So let's call this advertising. I'm curious what you think the purpose of advertising is? It's to generate sales. Good advertising is targeted, Groupon is a blast. Good advertising maximizes ROI, Groupon is more expensive than offering a straight 50% to existing customers.
Yes, there are examples of businesses that benefit from offering a Groupon. Yes, Groupon can help you reach a large number of people. Yes, Groupon may lead to repeat business. And yes, Groupon will allow you to raise awareness more quickly.
So, if you want to offer a Groupon...offer a Groupon. If you want to use it as marketing, use it as marketing. If you read through my entire post, you'll see I didn't once advocate for printed coupons, tv ads, radio spots or anything else.
The only thing I offered as a better alternative is to build your business starting with your customers first. Incentivize and reward your customers to bring in new people. I also recommended that a Groupon could be used creatively such as offering a very small amount just to get people in and then going above and beyond.
I don't have stock in Groupon or any other group buying platform. I don't have a horse in this game. My perspective is that it's not the best use of resources, you are free to disagree with that. I'll be advising my clients to focus their time, money and energy elsewhere.