Businesses: The key to group deal success is your rebooking strategy
Here is a (positive) group deal case study:
My wife is a hair stylist who recently joined a well-established salon in a location where foot traffic is usually high. But with the recent economic slowdown and the closing of a nearby pharmacy, foot traffic was on the decline. So they called LivingSocial and put a deal together for “$25 for $50 of hair services”.
To really get the most out of their deal, I suggested they 1) prepare for the onslaught of calls, meager tips and fickle customers, and 2) more importantly, set a goal of rebooking every customer that walks in the door.
The deal sold 600 vouchers, my wife’s book is full for the next month, and the salon has managed to rebook 80% of new customers because of their rebooking strategy. This business really “gets” it, though I realize not every business does.
Much of the recent negative press on group deals stems from businesses not seeing the return customers they had hoped for. And to make matters worse, Groupon and others are promising numbers they cannot possibly deliver.
I would like to see marketers point out both positive and negative group buying experiences so we can learn from these and move on. Group deals are not going anywhere any time soon, as this daily deals forecast reports.
My advice to businesses looking to acquire new customers through group deals: get real with your expectations. And a word to Groupon: please don’t undercut yourself by promising metrics you cannot control.
Got any group deal case studies you’d like to share (positive or negative)? Leave a comment!
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dailydealsblog reblogged this from joeymuller and added:
Hi Joey, interesting angle....actually think there’s opportunity
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