Unless you’ve been living under a rock the past couple of years, you’ve surely heard about daily deal sites such as Groupon and LivingSocial. These sites have become extremely popular among people, after all, who doesn’t enjoy getting 50% off at a new restaurant or 50% off at an expensive spa?
For business owners, these sites can be an excellent idea since it can help them with their local business marketing and get new customers to your door. But as a small business owner, you need to ask yourself is: What do you really want—new customers or repeat ones? Do you want people who are only looking for deals, or do you want people looking for a brand they can be loyal to?
Also, did you know that Groupon typically gets 50% of what the customers pay? For example, if you put up an offer of 50% off on $20 worth of food. The customer pays you $10 for this deal and from this, Groupon gets $5 and you also get $5. That’s $5 for $20 worth of food. Imagine if thousands of people buy this daily deal (since these sites usually don’t allow you to put a limit on the coupons that can be bought), do you think you’re going to get any profit? Or would you actually become buried in debt?
Yes, there are many Groupon horror stories out there. Of course, this doesn’t mean that it hasn’t worked for some – there are also numerous success stories of companies that only have praises for these daily deal sites. But as a small business owner, are these sites the best choice for you? If you’re planning on marketing in West Texas, is it really recommended to use these sites that offer your coupons everywhere?
SaveLocal and Small Businesses
Here’s where SaveLocal comes in. ConstantContact, a company which has successfully helped thousands of small companies with their email campaigns, has now entered the deal site arena with SaveLocal. But what they’re offering is something quite different – SaveLocal basically helps you create, design, promote, and track your deals, at a very affordable price.
With SaveLocal, you decide what coupon to offer, the number of coupons you want to sell, and who can receive these offers. Unlike Groupon and other deal sites who reward people who are simply looking for a good deal (and aren’t likely to return and pay the full price), SaveLocal targets your existing customers and encourages them to share the coupon with their friends and acquaintances.
Basically, the coupons are only sent to the business’ email list and Facebook followers. The customers are offered the deal, as well as an incentive to share it with their friends and social network. It’s an excellent small business marketing strategy.
Though the people who will receive your coupons may be smaller in number, these people are the ones who are more likely to be returning and loyal customers. SaveLocal rewards your existing customers and encourages them to spread the word to their friends. These people are likely to be local, increasing the chances that they get the coupon. Also, for their friends to get the deal, they have to opt-in to your email campaign as well, giving you the ability to connect with them further.
You see, one of the basic downfalls of Groupon and other deal sites is the fact that you don’t get any information on those who buy your coupons. They buy the coupons, redeem them, and then they move on to the next 50% off deal, forgetting about you. But with SaveLocal, you can obtain the most valuable asset – a way to communicate with your new customers, to offer them other deals and encourage them to frequent your store again and again.
And what would this cost you? You only have to pay $1 to $3, depending on the cost of the deal you’re offering. This is perfect for small business owners, who can offer excellent deals and still get a profit from the sales.
But perhaps the main question you need to ask is: Why should I use SaveLocal? Can’t I simply create my own deals?
Well, you can. But SaveLocal makes it so much easier to conceptualize the deal and analyze the results at an affordable price. So if you want to save time and effort, then this site is a great way to do so.
For small business owners who want to offer deals to their customers without ending up in debt or even bankrupt, then SaveLocal is for you. Remember that you’re not targeting random people who just want a great deal. You’re targeting people who are likely to return and become regular customers. So to make it happen, give SaveLocal a shot!
Disclosure: I do have a partnership with Constant Contact. That partnership came about because of my genuine liking for their tools and system.
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