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SMS Marketing Best Practices

How to Run a Better Groupon Campaign for Your Business

May 27, 2011

Is your business going to be running a deal on Groupon, LivingSocial, DealOn or one of the other daily deals websites? If so, did you know that Groupon research shows that 78% of Groupon customers will never return to your business after they redeem their Groupon discount.

How to use Groupon to increase business

That’s why you see many small business owners like Jennifer London who owns a smoothie shop say the following:

“Most of the people who came are not from this neighborhood – I most likely won’t see them again.” – Ms. London (Wall Street Journal)

In the article, she said 900 people redeemed her Groupon promotion over the course of six months and she’s correct that she “most likely won’t see them again”. To be more specific, I’ve done the math below to calculate how many of her Groupon customers she can expect to see in the future. Be warned, it’s not a pretty sight.

So Ms. London after servicing 900 Groupon customers is only able to retain 198 customers that will do future business with her? That definitely doesn’t seem worth all the hastle that comes along with running a Groupon campaign for her small business.

What can you as a business owner do to make sure you get better results than Ms. London had with her Groupon campaign? It’s actually pretty simple. A recent study done by Accenture which is summarized by Mobile Commerce Daily shows that 76% of consumers want SMS coupons sent to their mobile phone. What if Ms. London was able to send mobile coupons to her Groupon customers, weeks, months and even years after they came into her business? Below is the math on what that would look like.

How to use text messaging to increase Groupon customers

That’s more than three times the amount of new customers for Ms. London after her Groupon campaign has finished. That’s a novel idea, but how is Ms. London supposed to collect all her Groupon customer’s mobile phone numbers? The answer is below and very simple. All she would have needed to do is pick a mobile keyword (the keyword below is YUMMY), display it at her register and instruct Groupon customers to subscribe on their mobile phones.

Here's an example of a text message display with the Keyword YUMMY and the short-code 68398

After Ms. London’s Groupon campaign is over, she will now have the ability to send out SMS campaigns, bringing those Groupon customers back into her business.

Need help launching your SMS campaign during your Groupon campaign?

 


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