Group buying websites are big business and growing, but what are they and how could they benefit your business?
There are an ever-growing number of these websites that offer large discounts to customers and vast exposure to businesses. Any number of business types could offer a deal on one of these sites. Often the deal requires a minimum number of takers before the offer becomes valid and a short period of time to buy. This can be an exceptional way of enticing new customers and creating exposure for your business on a large scale. There are however, some major dos and don’ts of using group buying websites and we’re going to take you through them.
DO some very careful planning before going ahead with a group buying deal. You could potentially see a month’s worth of turnover in just a couple of days. That’s a lot of customers to accommodate. Some businesses struggle to deal with the increase in custom in such a short period and as a result, their reputation is damaged. Consider setting a limit on the number of vouchers available according to what your business can handle and how many discounts you’re prepared to offer. It is better to have a successful offer limited to few people and then do another offer at a later date than do an offer on a larger scale that you just can’t deliver on.
DON’T be stingy on your discount. Competition across group buying sites can be fierce and customers expect a good deal. But remember, it doesn’t just have to be about reducing the price of an existing product or service, you could bundle together some of your products or services to create a package exclusively for your group buying customers.
DO consider what you will actually include in the offer. Remember, if customers have a good experience, they are more likely to repeat their business. Include a signature product that showcases your business.
DO think about the terms and conditions of your deal carefully. Are there particular times or days that you are busy and the offer will not be valid? Think about setting an expiry date – you don’t want people turning up a year later with their voucher in hand.
DO your homework. Research a number of group buying sites and select the right one for you and your business. Consider their popularity as well as which areas they cover and what deal they can offer you. These companies charge varying commissions on the sale of your vouchers so check the small print carefully.
DO evaluate ways to entice your new customers back. This obviously starts with a great experience first time round. Is there a follow up deal you can offer your new customers? Group buying websites don’t release the personal details of their customers so follow-up marketing could be a challenge.
DON’T underestimate the power of word of mouth. Although these new customers may be paying a fraction of your normal prices, they should not receive a fraction of your normal service. A memorable customer experience could pay dividends later.
So there you have it, some of the major dos and don’ts of group buying.