As the economy has slowed down, “deals” or aggressive price promotions have become a proven way to get new and repeat business. However, price promotion can be very expensive when you total the costs of the advertising and the lost revenue that went into the promotion. For deals to be successful, a business must see additional revenue from one of three opportunities:
- Repeat business
- Word-of-mouth referrals from deal customers
- Cross-selling opportunities
If you run a promotion but don’t see one of these three results then you’ll be guilty of the old adage “losing money on every sale, but making it up in volume”. This may be one the factors in why almost 40% of Groupon (one of the more well-known deal advertisers) customers don’t have a positive experience.
Does This Mean You Don’t Do Deals?
No. Deals can work great. Businesses just need to be smart about the deal they construct. A good deal:
- Targets your neighborhood where you are most likely to see repeat business.
- Generates an email address that can be used in future marketing efforts.
- Compliments other marketing efforts.
- Results in a positive experience for the customer, so they will spread the word about your business to their friends and family.
Deals are a great way to attract customers to your business and to drive the opportunity to build a long-lasting relationship. For more information on how BubbleLife Media implements deals for neighborhood business, please visit http://www.bubblelifemedia.com/about/news.
BubbleLife Media LLC