Groupon is a group buying website that allows users to take advantage of heavily discounted services and motivates those users to share the specials they take advantage of using social media. Groupon Works has just about all of the information needed for business owners, if you’re a small business owner and you would like to market using Groupon you can submit a business to Groupon here as well.
As many of you that subscribe to my rss feed already know, I am the founder of Extreme Tan and Smoothies, a chain of six indoor tanning salons located in the Tampa Bay area. Chances are you also know just how addicted to social media and social networking I’ve become over the last two years, especially if you connect with me on Twitter @extremejohn or via my Facebook fan page.
My addiction to social media and the thought of marketing to a group of social networking fiends caused me to rush over to the Groupon page to see what all the excitement was about. It didn’t take me long before I was looking for the section for business owners, I quickly found the business submission area and submitted Extreme Tan and Smoothies to be featured on Groupon.
As I waited to hear back from Groupon in regards to my submission I looked around for other group marketing services. After looking around I came to the conclusion that marketing my business on Groupon probably wouldn’t be best for me and my business. Here’s a list of reasons I don’t see myself using Groupon to market Extreme Tan and Smoothies any time soon.
6 Reasons I Won’t Use Groupon for My Business
1. I Hate Inconvenience
In today’s online social media age the last thing I want to do when I’m looking for marketing options online is write an email or fill out a form. Especially when it comes to finding out prices, information or trying to wait for approval on something.
2. I Have No Patience
It took almost a week to receive a response from a Groupon representative in regards to my submission. How long would it take if I had an issue and needed it resolved?
3. Groupon is Too Big for Me
Groupon as incredible of an idea and tool as it can be for small business owners it’s sadly not meant for all business owners. Groupon bases their marketing partnerships with small business on the popularity of that business’s feedback from online sources and press clipings. This sounds great but clearly bumps most small business out of the mix as most small business don’t have an over abundance of press clippings or reviews online.
Example: The small business we own and operate has serviced over 750,000 tanners and over 6,000 spray tanning clients in the Tampa Bay area. Even though each location has positive reviews online, the business is long standing and an industry leader in the #Tampa area, Groupon won’t accept Extreme Tan and Smoothies as a marketing partner.
4. I Like Options
There are already companies like Groupon popping up, I’m sure it won’t be long before Groupon feels a little competition crunch. With as busy as Groupon is I guess that’s a tremendous benefit to the small business customers looking to market on a massive social level.
5. I’m Cheap
Groupon looks for 50% of each sale made. There are other’s like Living Social that only grab 40%. Some will scream that the exposure levels are different, that’s fine maybe you’re right. I like profit margins, they help me stay in business and satisfy my customers.
6. I Like Control
I don’t care for the 6 month redemption terms that come along with doing a Groupon offer. Being in the tanning salon business my seasons are very short, I need to turn a profit in those seasonal months.
Having a 6 month redemption swing cuts into my seasonal months when I don’t need to offer specials that are as aggressive as my out of season specials. Other social coupon and group coupon services offer shorter 4 month terms that make it easier to market around my tanning seasons.
Now before I get out of here I do think it’s important to point out that every business is different and requires it’s own unique marketing. Groupon is a massive group marketing option for business owners, obviously not for EVERY business or business owner but certainly an option for some. I would expect that just about everyone here understands the importance of assessing a marketing plan completely BEFORE making a final decision.
In short don’t base your decision on using Groupon for your small business on my views, instead do your homework and see if Groupon is right for you and your business.
Leave a comment if you have personal experience with Groupon as a business owner or customer, I’m sure everyone would appreciate you sharing your experience.
Groupon Articles You Might Find Interesting
- Group buying has jumped the shark (econsultancy.com)
- 95% Of Groupon Clients Want To Come Back (businessinsider.com)
- Done Wrong, Groupon Can Cost Business Big (thestreet.com)
- Groupons Only Crush Your Business If You Use Them Wrong (businessinsider.com)