Groupon Review And Success Story!

In this Groupon review I am going to describe what Groupon is, the pro's and con's, and a success story that you're going to want read. Groupon can be a super way to get lots of customers in the door fast. What is Groupon? Groupon is a website that offers 'daily deals' to their subscribers. They send out an offer to their list every day. The cool thing about Groupon is that they only send offers out for local businesses. So if you are in Scottsdale Arizona, only people in that area will get your offer.

Groupon Review Part 1!

With Groupon you'll get instant exposure to thousands of potential clients. But there are few things to be aware of before you dive in and apply for their program...

Suggestion:

Use Groupon and see how they work before you apply for a salon promotion. Best of all buy one of the great deals. I found several too good to pass up on myself.
Groupon takes half of the agreed upon sale price. So if you offer a service that normally sells for $100, you will sell it for 40-80% off. You should probably stay in the 50% bracket. The better the offer the more customers buy your 'voucher'. My advice is, if you are accepted, you should get the sale price to result in an odd number percentage savings. So instead of 50% savings you make it a %51 or %49 percent savings. The odder the number the better. The reason you should do this is because in the Groupon offering they show the actual savings amount and odd numbers increase response.

Groupon Review Part 2!

Keep in mind that Groupon takes half of the agreed upon sale price and they charge a 2.5% merchant services fee to cover their own merchant fees of course. If you have a good brand, good reviews, and the perceived value of your services is also good, you should do well in an offering. You may have to use it as a loss leader. Because if you sell your $100 service for $50, you keep just $25 (minus 2.5% merchant fee). However, this is still a great deal for you because you are probably going to get a lot more customers in the door through Groupon than a regular coupon, and you can upsell and keep marketing to these customers. A $25 customer can easily turn into a $100, $200, or $500 customer. And they will come back over and over because you are using my salon marketing material and advice, right?

Groupon Review Part 3!

You have to be accepted. It's not difficult. All they want are good overall reviews, a good website, and a product or service that they think they can sell. Don't apply unless you have all three.

Groupon Success Story!

About 6 months or so ago I went to groupon and filled out their form to submit our business because I heard about them on a radio show. I Didn't hear from them until a few weeks ago. One of their sales representatives kept calling and following up. I didn't have a chance to talk with him because I am super busy. But about two weeks ago I got this random email from a customer of mine:

"Just wanted to let you know that we ran a Groupon promotion in November and had a TON of success. We made $14,000 in one day!

We sold the certificates and then ran a follow up postcard mailer to those who came in have been seeing steady return visits from those people. Plus we've been upselling many of the people to a new nail product we just started carrying. We also saw a bunch of new sign sign-ups on our website and have them in our auto-responder program sending out various promotions.

I'm not sure if our experience could be helpful to you or any of your clients but feel free to let me know if we can help."

Craig, Basin East Salon


Salon Postcard Marketing Example: See the actual follow up postcard that Craig sent out, and how he handled new Groupon customers. Plus, I include additional tips and suggestions on using Groupon and how to potentially improve the postcard (although it's already working well).
Thanks Craig!

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