Use Your Next Groupon Promotion to Build Real Long Term Sales
There is no doubt that Groupon can drive hordes of new traffic to your small business. How much of that business turns in a long term repeat customer is up to you, not Groupon. I hear the complaint all the time that Groupon brought in new customers, but the business never saw the customer again. Converting a Groupon customer into a regular customer
Instead of using Groupon as a single marketing strategy, us it as a starting point of a much larger campaign. Use Groupon to drive new traffic and then capture those visitors with a list building marketing strategy of either SMS, Email or both. Create a separate list for those that come in on a Groupon so you can test out the redemption rates of future offers. If you find that these customers offer a high redemption rate, go back and offer another Groupon and expand to Living Social and other flash sale sites.
Many small businesses are reporting that as competition in this social or flash coupon site medium heats up, you can negotiate for a higher percentage of the split from 50% to 60% by pitting Groupon against a rival. With any of these one time deal sites, figure out how much you are going to be giving away in lost revenue and then develop a marketing plan that includes building a list to make up for lost revenue and eventually exceed it.