You can grow a business through daily deal sites such as Living Social and Groupon, but you should not participate on a deal site unless you know you can reach a target customer that will return and buy again.
Here are four suggestions for leveraging a daily deal promotion in your small business:
- Update your customer service training. Make sure your staff is ready to give the white glove treatment to your daily deal coupon buyers. A customer who buys a deal could become a customer for life if they have a great experience.
- Have an up-sell. Create a basic offer for your coupon, but understand the real money to be made in a daily deal is with your up-sell because you don’t have to split that money with anyone. Create at least three up-sell offers and make sure that you train your phone salespeople and any direct salespeople on how to close your offer.
- Use your deal to build your email list. Have a call for your daily deal be on revenue. The profits from your deal might not be much, but it could be a great way to develop a highly responsive email list. Developing repeat customers is the key to a sustainable business model.
- Get the numbers right. Know what it costs you to deliver your product or service. Don’t price yourself under what it takes to at least cover your basic costs.
Republished by permission. Originally published at Nextiva.
Daily Deals Photo via Shutterstock
Aira Bongco
Yes. It is a matter of knowing how to up-sell your potential customers. The good thing with these deals is that they would not have signed up if they are not interested to begin with. It can be quite tricky but it is worth learning.
Martin Lindeskog
What will the daily deal do on the bottom line in the long run? How long time do you think daily deal site like GroupOn will be around?