If Groupon is working for your business and you are getting repeat business, then please ignore this post, if not please watch the 3 minute videos comparing Groupon V Facebook Ads.
Groupon Deal seeking community versus Facebook Ads specifically Targeted audience with the right message becomes very receptive to what you have to say.
50% OFF £40 Dinner Coupon (50%/Cost £20 each)
£20 sale is split with Groupon (50%/Cost £10 each)
If you sell 300 Groupon Promo meals in 1 month, it’s …
£12,000 (£40 x 300) worth of sale but sold for £6,000.
Split the £6,000 with Groupon (kept £3,000)
£3,000 in the Cash Register for 300 meals.
*Average costs for a restaurant is 60% of revenue, food plus labour.
Therefore, the cost of Groupon promotion is £7,200 (60 % of £12,000)
Nett profit from Groupon Promotion, income – cost.
£3,000 (in Cash Register) – £7,200 (costs of food + labour) = £4,200 LOSS to the restaurant
So why do businesses use Groupon?
To sell products for a small profit (hopefully) and gain publicity in the process. Exposure is probably the most useful thing Groupon can give you. But ……
1 In return the business has to sign a long term non flexible contract
2 No customer emails captured for the Business. Groupon keeps the email addresses
3 No contact or relationship with the new customers once they leave the restaurant
4 Groupon subscribers are discount voucher seekers
So why market your Business on Facebook + Messenger?
1 No contract, run the promotions as short or long as you want. You are in control
2 Collect subscribers into your Messenger Chatbot, better than emails
3 Contact your subscribers regularly via Messenger and build relationships
Inform your subscribers about special offers and events at your restaurant to encourage them to come back, thus become repeat customers and increase revenue
4 Targeted people who are interested in your product on Facebook, not Groupon deal seekers
Stay one step ahead of your competitors. Take advantage of new technology for Business – Messenger Chatbot – and incorporate into your marketing now.
With Facebook Marketing, you could spend £50 a week and test the waters, if it doesn’t work, stop. You are not stuck in a long contract as with Groupon.
Click Here to watch a 2 minute video on how FB Messenger Chatbots help build businesses.