Stop Blaming Groupon!

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Monday, November 21, 2011
Grouon logoSo, please forgive me if this comes off negative, but I’m really getting kind of tired of all the Groupon bashing I hear. 

Most of the complaints follow the theme set out in this recent Forbes Article:

"...Jonathan Umbel suffered the Groupon experience Chen was trying to avoid. Umbel is the owner of the Tackle Box, a seafood restaurant in Georgetown that bills itself as Washington, D.C.’s “first and only lobster shack.” He lured thousands of customers by offering bargain-priced lobster rolls and fresh oysters on both Groupon and LivingSocial, the other big local-deals player (now backed by Amazon). That goosed his revenue but hurt his margins. He has no hard data to indicate if diners made return visits, which was the whole point, and now he thinks that the steep discounts hurt his brand. Umbel isn’t planning any more deals."


Just who’s fault is this?
 Groupons? Uh uh… no way. This is your fault Mr. Local Business. Why didn’t you collect any data on this massive gift from the marketing gods?

Something as simple as, “Hey could you write your name and email address on the back of this?”    

I stomped my feet and pouted the same way more than a decade ago, when I saw local merchants spending precious marketing dollars on the co-mailers from Val-Pack, money mailers, and the like. This is no different than the mistakes small business marketers made back then. They would do these untargeted blasts that brought in a lot of first time customers... and never did anything with this windfall.

Groupon vs old fashioned marketing

If a customer brings you a coupon, have them WRITE THEIR NAME & EMAIL ADDRESS ON IT. Not many people who are getting such a great deal are going to deny you this simple request, right?  

While you are at it, take a picture of them! Take a picture of the massive crowd trying your lobster (or whatever it is you sell) for the first time. Interview them. Take video.  

If you are investing this much effort in a one-shot marketing acquisition campaign there is very little excuse not to have a complete strategy in place  (don’t tell me you are too small or poor to do some of this… remember I was a dry-cleaner before co-founding ExactTarget)  All this stuff is just about free.  

Imagine a scenario:

1.    Bunch of new customers come in from Groupon offer (success)
2.    You capture 50% of email addresses (success)
3.    You take picture of group or individual enjoying the experience (success)
4.    You post these pictures to your blog! Your blog is your content marketing hub and can help you in numerous ways... not the least of which is search.
5.    You email said picture to individual, thanking them profusely, offering them something to return the next time (Sidebar:  In my datatdriven dry cleaning days, I learned that if I couldn't get a new customer to make three visits 89% of the time, I’d never see them again)  Invite the people to comment on the picture and include details of their experience. (This often takes more than one email. Do not fear. Keep asking.
6.    Share Buttons! The biggest part of that email needs to be the share button.  People are far more inclined to share pictures of themselves than they are any other content.

What about other marketing efforts?

Well now you have a massive library of content (pictures, stories)  Use this content for Newsletters,  Facebook wall posts, Tweets etc….

And finally, don’t let it die.  I have a saying, “Thanksgiving will come again.”  If you create great content of one event, reuse it for another event. I just took a Turkey Class @ a local butchery here called Goose the Market.  This is not only great content to use continually through this Holiday season—promoting everything they have related to cool holiday food—it’s also great content for Next Thanksgiving and every Thanksgiving to come.   

1.    Put in on you blog to have a ‘library’ to draw from
2.    Push from blog to Facebook some of your best stuff from last thanksgiving
3.    Email those attendees immediately after this Thanksgiving to get pictures: ”Chris! How did the carving go this year? Share a picture of your finished Turkey!”
4.    Next, you have an amazing database of people to re-target. While you're at it, remember that people repeat behavior. Someone who sent you a Thanksgiving picture that they then share is by definition “Engaged.”  Ask them for pictures all the time. Christmas, Hanukkah, Valentines Day, etc.

Stop beating up Groupon
Have I beat this dead horse enough? Stop blaming Groupon and take a look in the mirror. What could you have done differently?


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