Cohen: Groupon Is Good for Business
How else can a company with two employees and no marketing budget reach millions of potential customers? TIKKR (TIKKRwatch.com) has grown beyond expectations in our first two years in business, and Groupon has been a great partner and a big catalyst for that growth.
We sold 1,800 deals in our first Groupon offering. Groupon worked with us to forecast the next round of sales, and to date we’ve sold more than 10,000 units without feeling overwhelmed along the way. Since we are a product-based business our goal is volume and great customer service. Groupon delivered on both.
Groupon has a massive subscriber base and definitely lives up to its promise of driving traffic and sales. However, it's the business owner’s responsibility to harness that exposure. Sure, running a Groupon is good for a quick infusion of cash. But if you look closer, the real value is exposure. (Read More:Groupon Isn’t a Good Deal for Businesses)
Groupon is a spotlight that shines brightly upon well-run businesses, but can expose poorly organized operations. Get your house in order before you run a Groupon and you will reap massive benefits. (Read More:Groupon Launches Credit Card Payment Business)
"If you create compelling reasons for a Groupon customer to really be a fan, then you will get and keep those customers after a Groupon deal. The question isn’t whether Groupon is “good or bad” it’s: are YOU “good or bad?”"
A Groupon e-mail blast gets your name and logo impressed on the minds of thousands (or millions) of potential customers.
That type of exposure will cost a business thousands of dollars in upfront marketing costs - whether you choose Facebook , Google , television, print, or radio.
Successful marketers know that the key to converting is repetition. Groupon will get the ball rolling; then it’s up to you to reach those customers again and allow them to connect the dots to determine that your business is a great business worth knowing.
Some tips for capitalizing on a Groupon Deal:
- A deliberate system for customer retention/re-marketing
- A creative, compelling way to upsell and cross-sell
- Treat your Groupon customers the same (or better) than your regular customers to keep them coming back
- Inspire Groupon customers with a great experience with your brand and they will share it with their family, friends, and social networks
TIKKR makes interchangeable timepieces in 24 colors. Groupon worked especially well for us because we were able to offer those customers a complementary good in the form of additional watch bands. A customer that buys from you once is a lot more likely to buy again than random new customer “X.” These new customers have a huge value if you convince them to be loyal, long-term purchasers. (Read More: What’s the Deal with Groupon’s Stock?: Greenberg)
If you create compelling reasons for a Groupon customer to really be a fan, then you will get and keep those customers after a Groupon deal. The question isn’t whether Groupon is “good or bad” it’s: are YOU “good or bad”?
Randy Cohen partnered with Cory Stout in 2010 to start TIKKR, a company that sells customizable watches. Cohen is also the founder and Chief Energizing Officer of TicketCity, a company that buys and sells tickets to live events including sports, concerts and theater.
CNBC and YPO (Young Presidents’ Organization) have formed an exclusive editorial partnership, consisting of regional “Chief Executive Networks” in the Americas, EMEA and Asia-Pacific. These “Chief Executives Networks” are made up of a sample of YPO’s unrivaled global network of 20,000 top executives from 120 countries who are on the frontlines of the economy. The opinions of “Chief Executive Network” members are solely their own and do not reflect the opinions of YPO as a whole or CNBC.