Ann Gabriel | ExecutiveChronicles
Consumers are often enticed to buy from coupon sites to avail group deals and enjoy big discounts. Oftentimes, we as consumers love to avail a restaurant meal for the price of fast food or get a facial for half off.
But come to think of it, are these bargains good for businesses?
Websites like Groupon and Metrodeal offer discounts and promotions that entice their customers to patronize businesses.
You have to consider a number of things, if these deals are going to make sense for a business. There has to be a limited number of deals. Coupons must only be allowed to a specific number, a particular season or a time period. Deals must not be conflicting with days that your establishment is full of regular customers. Offer them only during non-peak days.
The type of discount offered must depend on the business and the clientele. A diner might want to offer a buy one get one deal, but a pizza shop might do better with P100.00 off as fewer people need two pizzas.
Small business owners should consider alternatives to peso-off and percentage discounts, such as adding freebies for which they would normally charge.
Hotels can offer free parking or Wi-Fi at very little cost, or a spa could add a service to a package.
Strategies might not be appropriate for restaurants, which have fixed food costs. Consider alternatives that restaurateurs can do to get people in on slower nights or that will encourage them to increase their spending or come in more often.
Business owners ideally want 500 new customers, even though the number of seats or accomodation can only fit 100. Ask coupon companies to work well with you in putting a cap on the number of offers that can be redeemed.
It is advised to be not so much aggressive when considering of a group deal strategy for your business. Customers might get irritated if they are not accomodated properly. Your strategy might backfire. Instead of getting new customers, they might not even recommend you to their friends or might consider of saying negative opinions about your business.
Social Media and online reviews can kill your business too.
Business owners must provide accurate data. It all depends on accurate information.
Bad deals can break a business. Business owners must make a study prior to availing of a coupon deal strategy.
One thing that you also need to consider is ‘truth in advertising’. Oftentimes, customers use your ads against you if they don’t actually give what is seen on the ad.
It is best that business owners manage their expectations.