Is Groupon Right for Your Small Business Marketing Strategy?

Most consumers love Groupon. Who doesn’t want to save 50% or more on dinners out, spa treatments, and the occasional family trip? Consumers have saved a ton of money through the years on haircuts, restaurant gift certificates, and even an uber-relaxing body wrap. How effective though is Groupon as a tactic within the average small business marketing strategy?

Here are some pros and cons of using Groupon for your small business:

Pros:

• Provides an opportunity to reach target consumers to showcase products & services.
• Builds relationships with first-time users.
• Can generate to increased revenue during sales slumps.
• Offers an opportunity to reach a wide audience at once.

Cons:

• Can hurt the brand through discounted rates. Many find it hard to pay full price for a product or service they previously received for half off.
• Very low profits for those with tight margins.
• May attract only those looking for a one-time deal without plans for a return visit.

Deciding on whether Groupon is right for you small business will depend on the industry you are in as well as personal preference. If you aren’t sold on the idea, you can always opt to run similar campaigns on your own. Cutting out the middle man, there may be greater profits and more campaign control by forging it out on your own.

Interested in exploring the Groupon options for your small business? The staff at Grand Marketing Solutions can create a winning plan to get the results you are looking for. We also offer a complete package of marketing services from digital campaigns to print advertising and website management. Partnering with our clients, Grand Marketing Solutions helps businesses grow while building brand momentum.

by Katie Zurawski