Austin Innovative - Mobile Media Consulting

Mobile Websites, Mobile Landing Pages, and SMS Marketing

Creating Higher ROI with Groupon

higher_roi_with_grouponSo you’ve decided to take the plunge and try a Groupon for your business. You’ve done the research, look at the numbers, and decided that you can afford to do a deep discount on a particular product. This is a giant step in the direction of driving customers and clients to your business. A Daily Deal can ad an additional 100 to 10,000 customers over the duration of the deal. It not only is a great deal for your customers and clients, it is a great marketing tool, especially if you are struggling to get them in the door due to location or being a new business in town. Now that you have driven all those new customers to your door, how do you retain those customers and make them repeat customers?

You could make sure all your employees create excitement, talk about your great prices, and/or have them sign up to your email list. These are all great ways to create buzz around your business and encourage more people to visit again and again. Let’s face it though, many of these daily deal users are one time customers that are only looking for a good price, not a place to call home. This means that you have to be a little more creative in how you retain those new customers.

Now, here is a little hint, make sure to have marketing materials front and center, especially during the deal, to show people why they should come back. For example, there is a restaurant that I love here in Austin, TX, and they had a Groupon deal. It was a $10 for $20 worth of food. The deal was great, the food was great, but they lacked one thing. What is that you might ask? Good question. They lacked a reason for me to come back beyond the Groupon. They did not market their daily happy hour, which I know they have, or any other promotions that may have been relevant. So if I were the type to only go for the deals, I would never have visited again in all likelihood. I share this example because it is a mistake that many businesses make when participating in these daily deal promotions.

Now, let me share a way that could have worked very well for the above example. Once they committed to participating in the Groupon deal, they should have created a separate marketing plan to retain all the new business that was generated. This could have been done in a number of different ways, but most simply by promoting their other regular weekly deals in addition to offering a way to “opt in” to a SMS, text, alert list on their website, on their in-store marketing material, and anywhere else they advertise. This is a very straight forward, cost effective strategy that will gain repeat business from those deal hounds that won’t often come back without an incentive.

So there you have it, a way to create a higher long term ROI from a Groupon or daily deal promotion. If you think it sounds too good to be true, think about this, how many people visit your site after they see the deal that is being promoted? If it is a great deal, it could be in the 1000s! If you don’t have a way to capture some of those visitors information, you are missing out on a golden opportunity to market to them in the future.

SMS marketing messages have a read rate well above 90%. To put that into perspective, if you get a open rate of 5% from an email marketing campaign, you are lucky. The norm for email campaigns is somewhere between 1-3%. That is powerful. If your deal in the SMS message is compelling enough, meaning the deal or product is killer, your redemption rate can be in the 10%-20% range. That is just the statistics, there is also the idea of building your brand. Giving your customers and clients that little reminder once a week or once a month can go a long way in making them long term loyal customers!

About Us:

Austin Innovative is a Mobile Media Consulting company based in Austin, TX. We specialize in Mobile Websites, Mobile Landing Pages and SMS Marketing. For more information on the topic discussed here today feel free to shoot us an email. Contact Us Today for more information on mobile marketing and what it can do for your business…