Group Discount Sites- My Two Cents

Unless you've been doing your marketing under a rock lately, you've heard all about the exponential growth of group discounting sites like LivingSocial, Groupon, Facebook Deals, Google Offers. Now Amazon, AT&T, and your credit cards are getting in on the action, too.

The idea is that if enough people join a deal, the customers get a discount, and the merchant gets enough new customers to make it worthwhile, and the discount site gets a cut. Everyone wins!

But does it really work that way?

Not always.

photo © 2008 Benjamin Reed | more info (via: Wylio) But doesn't this kind of thing generate customer loyalty? I'll get lots of new customers who return to my business, right?

Actually, the loyalty these discounts generate is to the discount site. That's right - LivingSocial is generating loyal LivingSocial customers, not customers loyal to your business.

But the good news is that you'll get a list of customers who purchased your deal, and now that they are your customers, you can continue to market to them and entice them to return to try your other products.

Isn't it going to be super-profitable for my business to get tons and tons of new customers?

Actually, this is heavily dependent on the nature of your product, the cost of serving your customers, and which deal site you choose - they all work differently. Carefully evaluate how much this will cost you and how much you will have to pay for this exposure. Make sure you understand exactly how many customers will see your deal. Some businesses create special products or services just for the deal sites - things that are less expensive to provide to customers so they don't take such a bite out of profits.

But the good news is that the deal sites are always looking for new businesses (and types of businesses) to try, and they are happy to talk to you about what kind of arrangement might work best. Don't be discouraged if you aren't a restaurant or salon- I've seen deal offers recently for solar panels, scuba lessons, and museum passes.

I can just post my deal on any deal site and it will bring in tons of qualified new customers, right?

Actually, no. Not all deal sites work alike and not all cater to the same clientele. Before you begin this odyssey, be sure you have an understanding of who your customers are and which customer segments you'd like to attract with your deal.

But the good news is that you can scrutinize the different sites to see which would be the best fit for you and your business. You can ask as many questions as you want about who the customers are, what they buy, and at what price.

Am I a total dork if I don't participate in the group buying party?

Actually, no. If you research the issue and determine that it won't be profitable for you, don't do it.

The good news is you can always try it later, if it makes sense another time.

Need help navigating this deal-crazy landscape? Let me know.

Don't Rickroll Your Audience - Try this Instead

For those of you who haven't had the pleasure, getting rickrolled means that you've clicked on a link to content that interests you, only to get Rick Astley's "Never Gonna Give You Up" video.

Why am I talking about this now? Rickrolling is so 2008.

Because thousands of businesses rickroll potential customers every day.

How?

Rick Astley.
Flickr user chinnian

1.  Say you really need to move some polka-dot sweaters this week, so you advertise a great deal on them. Unfortunately, you send users to your home page, where the sweaters aren't promoted. Users have to use your menus to get to apparel, then women's, then sweaters, then polka-dot. Congratulations, you've just annoyed the crap out of your customers, and most have given up.

Don't rickroll - link directly to your deal!

2. Say you've just discovered that your product, baby powder, repels ants like nothing you've ever seen. So you do some promotions targeted to people interested in beating their ant problem. Unfortunately, you send these folks to your regular baby powder page, which is all about beating diaper rash. Is this the same stuff that makes ants go away? Your customers don't know. They leave empty-handed, feeling confused.

Don't rickroll - match your audience to your content with tailored landing pages.

3. Say you've created a great new diet solution. You place an online ad that says "Avoid these five foods, and lose weight today!" Lots of people click on this ad, but these five dastardly foods are nowhere to be seen. Instead, there's a video of indeterminate length (Are the five foods in there? Do I have time to watch this now?) and a exhortation to join your paid diet plan web site.

Don't rickroll - provide the content you've promised and people will want more.

Need help matching your deals, your content, and your audience? Let me know.

Four Ways to Lose the Sale

There is nothing better than a great salesperson. I mean it. I’m not being facetious.

There’s nothing so amazing as a person who knows their product, is passionate about it, knows why you need it, and can communicate all of that with a great story.

Recently, I sent out a request for expertise and ended up talking to 14 different vendors about a service I need. Some of you lost the sale, though, and here’s why.

1) You didn’t even take three minutes to find out what I do, and it showed. Please have at least some idea what my business is. Do a little research. If you're not sure, ask. Unfortunately, some of these same people DID NOT LISTEN to my answer, and I had to repeat myself. This was REALLY annoying!

photo © 2011 Michael Whay | more info (via: Wylio)
2) Please don’t OVER-respond. Some of you sent an entire suite of possibilities to me that had nothing to do with my inquiry. I need to know how you will address the problem I have now before I hear about the rest of your offerings. Don’t bury the actual answer to my question.

3) You called me when I asked you to e-mail me. I asked you to e-mail me because that is how I prefer to get information. Aren’t you paying attention? How much attention will you put into the service you’re providing if you can’t follow simple instructions?

4) Please don’t use jargon. You don’t have to say, “Do you have an internal strategic framework around that process?” when you mean, “Do you handle this in-house right now?” I felt like I was being fed a line, and I felt like you were talking down to me. Of course I want an expert to help me. But trying to make me feel stupid doesn't automatically turn you into an expert.

That said, some of the people responding to my inquiry did a fantastic job.

Here’s what you did:

1) Clearly answered my exact question, and asked for additional information to follow up.

2) Researched my business a bit, and it showed.

3) Respected my request to be contacted via e-mail.

4) Sent me useful information and asked for next steps.

5) Showed some enthusiasm for what I’m trying to achieve.

First impressions mean a lot. If you’re in charge of a sales team, does your sales process help them to avoid these pitfalls? How?

Need help? I'm happy to take a look at your sales process, and boy am I opinionated.