As you view the long line building across the street in front of your competitor’s shop, you wonder what he must be doing right and you aren’t. That is what Jessie Burke, who runs Posies Cafe, wondered. When the mystery was revealed that it was a Groupon event that attracted the crowd of customers, it looked like a good idea so she called to give it a try. In her blog she wrote that, in retrospect, it was “the single worst decision I have ever made as a business owner thus far.” Why?
What is there not to like about Groupons? They advertise for you for free and get a split of the revenue; you get hundreds of new customers; customers get a great deal; it’s a win-win-win situation, right?
Think again! While there are merchants who win at a Groupon offer, many other merchants do not. It all depends on the deal they struck with Groupon concerning the revenue sharing and whether they really get new, repeatable customers — or customers who visit once just to redeem the coupon.
Jessie’s experience is revealing. It turns out that social media Groupon sales agents are like most traditional brick-and-mortar sales agents: they usually try to arm wrestle you into losing propositions. Groupon seemingly does not subscribe to Zappos’ philosophy.
Read about Jessie’s experience at: Posies Cafe.
If I am ever in Portland, I know where I am going for a coffee and bite. You want to build a loyal, repeatable customer base who can always find a table at your place and doesn’ t have to wait long to get served pleasantly. Is that why I seem to have an aversion to anything coupons?