Small businesses -- like any other business -- are faced with the task of growing however and whenever they can. However, unlike larger businesses, small businesses can’t rely on large amounts of capital in order to do it. They need to find creative ways to get more customers so their revenue increases and they can expand.
The good news is that there are plenty of strategies that small businesses can use to grow to the size and scope that they want. Sure, it might take some time, but everything that’s worth doing always does. One of the easiest ways you can generate new customers is to advertise offers on Groupon, a website that is dedicated to connecting customers with great rates and discounts. Here are a few tips if you are thinking about using this discount giant to increase your revenue.
How Does Groupon Work?
Groupon acts as a middleman between you and your customers, and with over 50 million active customers at the end of 2016, they are good at what they do. They offer their services in nearly every major city across the country and can help local businesses reach new customers.
You pay a fee to the website and they will list the discounts you are offering. On the other end, customers get to use the website for free, so there’s big incentive for them to visit and see what deals they can get locally every day. Groupon earns commissions on the transactions and also generates ad revenue, so everybody wins.
The customers can download and print out coupons directly from the website, so they have them whenever they are ready to call your business for your services.
What Discounts Should You Offer?
As a company that delivers goods, you should focus on offering discounts for your delivery services. This will help you keep the price of the actual products the same, but may entice people to order them because the delivery fees are slashed or cut out altogether. This can get people excited about your delivery services and let them know that you are available whenever they need something.
You can also offer discounts on your products themselves. Sure, you may lose a little money in the short-term, but the long-term effects of people buying your products will help your small business grow in the future. You can also offer time-sensitive deals -- “good for today only” or “deal ends Tuesday” -- that will give a sense of urgency to the customer and may make them more willing to take your offer.
Know the Expenses
Advertising offers on Groupon can be very lucrative if you do it right, but it may also lead to added expenses.
Again, the site is not free for businesses, so make sure you are comfortable posting deals that may not be taken up by users. If you go with too many offers and not enough takers, this strategy could lead to a major leak of resources that you may want to reconsider.
If you are successful, you may see an increase in deliveries, which means you may have unexpected expenses. If you deliver in a large city and use scooters or motorcycles to get your products out, the increased deliveries may result in an accident, where you’d have to contact a motorcycle accident lawyer for help. This can lead to unexpected fees and costs, if you're not prepared, may outweigh the benefits of increased sales.
Get a thorough understanding of your resources and decide whether advertising on Groupon is the right move for your company.
Best Business for Groupon
Some businesses perform better than others when they use the site. Businesses that have high-profit margins, use perishable products or have a decent amount of unused capacity are the primary beneficiaries of the website’s services.
This means that if you deliver food, you can greatly benefit from using Groupon, but if you deliver high-end furniture, you may not see the results you want. You know your company and its books, so you can decide if the site is right for you.
If you decide to use Groupon, be honest with your customers and don’t try to “game the system” with hidden fees or other nonsense that will anger the customer. Remember, the goal here is to increase your brand recognition and gain new customers, not make a quick buck and move on to the next marketing plan.
Groupon can be a great resource for small businesses: is it right for yours?
Emma Coleman is a student who is working towards a degree in business management. She loves to support indie businesses and shares some tips and ideas with small business owners through her written articles.