The Cost of Special Offers and Social Media

Really interesting Facebook post from a small business that didn’t think through the pros and cons of Groupon and it almost put them out of business. http://www.facebook.com/note.php?note_id=443354298928&id=700068178 

One commenter stated they wouldn’t use Groupon again. But it’s not Groupon’s fault. Before entering any social media or shared coupon offer as a business you better know your costs and set up limits.

With traditional offers, you can estimate your reach or set limits. But with social media offers, business owners don’t often understand the potential reach. One potential pitfall, is trying to generate new customers through existing social media channels, and then having your regular customers who would normally pay full price, pay a heavy discount. Of course rewarding good customers is a good strategy. But using the same tools for rewarding and attracting new customers usually doesn’t work.

Advertisements

One comment

  1. Question about Groupon · · Reply

    Really curious why you can’t establish limits with Groupon. What about service businesses that can only handle so many customers.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: