Have you been caught out by the voucher marketing frenzy?
Do you feel pressured into using a Groupon or other voucher offer to boost your business?
Are you being told that your main competitor in your area is just about to sign up?
Then we think you should pay attention and contact us. Here’s why.
In the last 3 weeks, we’ve been working for one of our clients, Need-A-Cake, on their PR. For the last 18 months, we’ve been working to improve their profits and increase their sales, both of which we’ve done. However, whilst our head coach departed across the seas to an American Project, Groupon descended and convinced Need-A-Cake’s Web marketers that this voucher marketing was a compelling idea. Clearly, it wasn’t.
Groupon say that 75% of their voucher buyers would use them again.
Why would only 75% of voucher buyers, who are getting over 60% off (in the main, from you, the small businesses that are the backbone for the British economy) go back and use them again?
I’ll bet that you, as a small business would be very upset to know that 25% of your customers wouldn’t use you again.
But if we dig behind their statistics, we’ll find that their customer base buy vouchers against a multiple of providers, many of whom begrudgingly (or innocently) provide the services with the hope of retaining these customers for future orders. The statistics don’t show that many of these voucher buyers certainly won’t go back to many small businesses, because those businesses were ill-equipped to deal with the deal, and not fully understanding of the fine print. Some of them will have been sold the wrong solution.
Is this your small business?
It’s a fact, that most small businesses are born out of a passion, a skill, or some knowledge that the business owner has, which is then transferred into delivering a product or service to its customers for a fair, or as I believe often a below fair price. Now, why do I believe that it’s often below a fair price? Experience has shown me that small businesses, often undersell themselves. Now, I have attended 20-30 sales training programmes, worked for TACK Training, and have for over 20 years delivered sales training and sales advice to start-ups through to the world’s largest provider of non-leased office space, Regus. But many, many small business have never taken a professional sales training course, designed for their market to help them sell their wares for the best price to the right customer, who will value what they receive enough to come back again and again.
The problems that you face, are nothing new. A salesperson, wants you to buy into their scheme. They convince you, based upon these methods:
1. If you don’t take up the offer, your competitors will, then they will get all the opportunities and you won’t.
2. If you take up their offer, it will be fantastic for your business.
Now then, being a ‘numbers’ company (everything we do, in our business consulting is about empowering business people to improve their lives, and we do that by improving their numbers), we advise all our customers to look at this:
- What will we gain?
- What will it cost me to facilitate?
- How could it harm our reputation?
- How will our current and valued customers perceive it?
- How does the voucher-buying public differ from our regular customers?
- What would happen if all the enquiries came in at once, or if everyone telephoned to enquire? What would these enquiries cost me?
- Is it sustainable?
- Will they come back?
We can’t get you to think about the repercussions of these question here. They need to be thought through. But if you would like to read our report on voucher buying, based upon real investigation, and experience, then just tell us who you are and what your business is, and we’ll send you our pack, free.
If you would like an immediate consultation with us, on this issue, we offer an hour’s personal consultation for £49 , inclusive of the cost of the call, from one of our business coaches that understands the pitfalls you could face.
Tell us your Groupon issues? If you have been badly affected, we will try to help. Call us now. We have a wealth of advisers across the UK who can help you recover from this. Just let us know.