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Home / Blog / Groupon – Friend or Foe?

Groupon – Friend or Foe?

Posted on: 04-6-2011 Posted in: General

MGE MarketingThe world of marketing is anything but boring and there’s always someone out there who thinks up new ideas to get people to buy products. Take Groupon, a deal-of-the-day website that started out in Chicago just several years ago and has exploded into an international $1.3 billion operation.

What’s Groupon? Well, take the old coupons in newspapers and magazines, multiply those with thousands of the same kind offering outrageously cheap deals and once a certain number of people agree to buy into those deals, get those coupons cashed in. Groupons are “group coupons” which can be validated when a predetermined number of people sign up for the offer. If that number is not met, the deal is off, so nobody loses any money. Groupon gets paid for every validated coupon – sweet deal. With Groupon promotion on Facebook and Twitter and special Groupon apps for Android, iPhone, and Blackberry, it can’t go wrong – or so it seems.

As with all sweet deals, there are snakes roaming in the grass. Groupon only works if the company that offers the deal is set up to actually deliver it. You see, Groupon puts no specific caps on the number of people who can respond to a deal. There is a minimum required amount for the deal to go through, but there is no maximum. So you get the (actual) example of a coffee shop which was stampeded by over 1000 customers on the first day of their offer. They couldn’t deal with that amount of business and after long waiting times, hundreds of customers left, disgruntled.

I know of at least two dentists who put out a new patient cleaning, x-ray, and exam offer with Groupon. One of those dentists had more than 900 responses and had no way of treating that amount of new patients with their existing staff without having them wait for months. The other dentist had less response – still well over 100 – but literally all of them already had a dentist and just came in for the free cleaning and exam. None of them wanted further treatment.

Groupon bases its philosophy on the fact that if you flood a company with new customers, some of them will stay, and it’s up to the company itself to make this happen. In many cases it does – certainly when the new customers are happy with the service or product. But in the case of the two dentists I know, this didn’t happen, and for the most part the Groupon deal meant a lot of extra work with very little revenue.

Yet, there are ways Groupon can work for dental practices.

First off, I would make very sure, before entering a Groupon offer, that the practice is set up to deliver to the hundreds of people that will come for the offer.

Next, Groupon only accepts cleaning and bleaching offers from dental practices. This may present problems for new patients who have periodontal problems (likely the case with most of them) which needs to be treated before bleaching or cleaning can occur. In such cases, the doctor or hygienist will have to explain why cleaning can’t be done and that can result in upsets, since it was part of the offer. So the dentist and staff will have to work out how they are going to solve such situations and give the new patient an acceptable alternative.

Lastly, and most importantly, I would work out beforehand what to do with the “deal hunters” that only come for the offer or already have a dentist, or are not interested in further treatment. This is a matter of good salesmanship and real care to motivate this person to want the treatment he or she needs. The consults, exams and x-rays may reveal dental situations that need to be addressed, no matter if the person is interested or not, or whether he or she already has a dentist.

At the MGE Communication & Sales Seminars, delivered by MGE Management Experts in Florida, dentists and their staff learn to deal with patient objections and fears, so they are motivated to want the treatment they need. Having learned and practiced these techniques, those dentists can comfortably get new patients to come back and receive their full treatment plan.

With any marketing campaigns and endeavors, no matter how brilliant they are, it really comes down to the company or practice to turn responses from those campaigns into real conversions – i.e., buying customers. It’s part of the marketing process to figure those things out before launching into a campaign.

And that’s how you can make things like Groupon work for you.

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MGE: Marketing
11800 30th Court North St. Petersburg, FL, 33716-1848 USA 
jayverweij@gmail.com •&nbsp727-530-4277 ‎
  • (1) Comment
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  1. William04-06-11

    You bring up a very good point in your article. Groupons can be outrageously successful if correctly used. But as you so correctly bring up, the marketing of it needs to be thought through before you run the ad. Some business models have an easier time with this than others, but I am sure there is a good solution for the dental field as well.

    Some of the clients I do marketing for myself, have used Groupons with very good results. One thing they worked out before hand, was how to sell “half a service” using Groupons. I have half a service in quotes here, as the way the presented it they still made it sound like a very good deal.

    The client I am talking about runs a Spa, and did a Groupon for laser hair removal. However they made the groupon for 3 rounds of treatments of small to mid sized areas, enough to get one started and to see a result, but no matter what, the customer would basically have to come back and purchase more in order to complete a full program. Because they were upfront about this and clever in their ad wording without seeming to promise more, this had very good results. Over 400 new clients in 48 hours, and this was despite a competing Spa playing dirty tricks on them and leaving fictional “bad reviews” on their Groupon ad.

    Not being a dentist I can’t really say what service a dentist could offer in a similar fashion, but I would sure be interested to see if anyone has any bright ideas in this area.

    Best,

    William

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