Are you considering advertising with Groupon, Daily Deals, etc? If you are a local restaurant, bar, nightclub, tanning salon, fitness center, etc., these types of advertisers may not be the best option for you.
While it is true that these types of advertisers can get your offer in front of a large crowd, studies show that the return on investment for a business like yours is not the best.
With these types of advertisers, they ask you to create a special deal for your place of business and then they sell these to interested patrons. In most all cases with restaurants and bars they ask you to create a “buy one – get one free” coupon. They work with you to assign an amount to charge people who want to use the coupon.
Groupon then sells these all over Internet, past customers and to people who have signed up to receive emails about deals in their area. The exposure can be great, but so is the cost.
Groupon, and other related businesses, keep ½ of the price of the coupon. Lets say that you are running a “buy one – get one free” coupon with Groupon and are selling it for $9. On top of you having to provide the second meal at no charge, you also will pay Groupon $4.50 for everyone they sell.
The other major drawback is that you only get to market to this list one time. Per the Groupon Terms and Conditions (found here), they will not share with you the emails or contact information with you, yet they will continue to market future Groupon deals to the people who purchased a coupon to eat at your establishment – including your competition.
This is why restaurants, bars and nightclubs have found that Mobile Marketing is a much wiser and profitable investment. Other than the initial set up costs of the campaign, which is fixed, you can continue to market to these people in the future. Reaching new customers is typically one-tenth the price of what Groupon and others charge.
To find out how you can leverage the power of Mobile Marketing simply fill out the contact us form.