Five Things to Consider Before Making a Deal with GrouponAssociation of Strategic Marketing
November 4, 2013 — 1,563 views
Groupon is a great tool for marketers. It helps them to get their products discovered and attract new customers. It helps them gain a foothold in new markets and helps them find new customers who may not have tried their products before. However, there are several considerations that a marketer should keep in mind before making use of Groupon. Groupon has several pros and cons, both of which should be kept in mind by a marketer in advance. Let's take a look at the Groupon pros and cons.
Be Ready for Excess Capacity
A Groupon campaign can sometimes result in a huge influx of customers. This can put a great strain on your company’s resources. Your company could run out of its product inventory. This is likely to happen if your campaign is so successful that it attracts too many customers. To avoid such a situation, you should keep a large stock of inventory in anticipation of your customers. This can help to tide over the swarm of new customers. This will also create a good impression with your customers. They will come to trust you and will look to you as a place where they can get their favorite products at any time at a great discount.
Be Ready for a Lukewarm Response
Sometimes, a Groupon campaign does not meet its desired goal and fails to attract any customers. Such a situation is rare, though it can happen to anyone. In such a situation, your products might remain unused and you might have to restock or re-shelf them. If such a situation does arise, you should increase your marketing efforts to attract more customers. You could try the word of mouth method to get more customers. The behavior of customers can be highly unpredictable and marketers should be aware of this.
Be Ready for a Change in Your Reputation
As more and more new customers try your products for the first time, your reputation can improve or degrade overnight. It largely depends on the impression that your products make on the new customers. The customers will then spread the word of mouth information to other customers. This leads to a chain reaction, which can have major impact on your brand in a very short time.
Make Further Offers
In addition to the products that are already on offer, you should make further offers as well. You could provide free servicing, offer freebies and trial packs of other products. This can entice the customer to try out your other products as well. This can have an overall positive impact on your business as it promotes other products as well.
In addition to the offers, you can provide additional discounts. These discounts could be based on a number of factors such as early bird discounts, bulk discounts and stock discounts. These discounts are useful if you have a large stock that you want to sell away as soon as possible. In conclusion, it can be said that Groupon is a great tool for marketers who are trying to sell their products to their customers. It can be used to gauge customer behavior and can be used to tailor the marketing activities around it.