Social Coupon Tips for Small Businesses
Written by: Social couponing is a new craze buzzing across social media and offers small business the kind of reach that only large businesses could afford. While there are no upfront costs for businesses, they have to offer their products or services at a steep discount and split what consumers pay for the coupon, typically 50-50.
Not sure about what social coupons are? Read my previous post Groupon and Social Coupons.
Here are things to consider before offering social coupons:
You’re paying for marketing
Social coupon specials are meant to be part of your marketing, not as money-making endeavors. Your goal should be to expose your business to new customers and to build awareness.
Do the math
Since social coupon companies typically take 50 percent of what they sell, make sure you do the math to make sure this is something your business can afford. Learn more about Groupon Math and what you should consider.
Fill empty seats
Social coupons work great for businesses that have empty seats or a surplus of inventory that will be wasted. This includes restaurants, spas, sporting events, etc.
Up-sell
Think about what your up-sell is. It’s good if your coupon customer will spend more than the face value of the coupon.
A common goal is to turn new customers into return customers. Be realistic on your expectations. Some of the coupons sold may already be current customers; others may not want to pay full price for the product or service.
Earn regular customers
Work hard to convert your new customers into returning customers. Have a strategy in place and train your staff in advance. Continue to reach out to those first-time customers over the next year to get them to come back.
Keep ‘specials’ special
Offering discounts too frequently can discourage people from buying at full price. Why buy season-tickets if you can get a deal on most games? Also be careful about which seats you discount. You may annoy your best customers who purchased premium tickets if the guy sitting next to them got a steeply discounted seat.
You want them, you got them
Don’t hope to break even with the coupons that don’t get redeemed. Social coupons are redeemed over 90% of the time.
Be sure you can handle the volume of customers. Try to spread them out over time and avoid having them all be redeemed at once or at the last minute. It can result in a bad experience and those customers probably won’t return.
Limit yourself
Set a limit on the amount offered. This way you don’t annoy your loyal regulars. It can also save you from getting swamped.
Understand the demographics you are promoting to and tailor you ad accordingly. Different social coupon websites target different demographics.
Be prepared
Because of the popularity of these services you may have to wait months before you deal is offered and you may not get much advanced notice before it runs. Make sure you plan ahead.
