SMS Marketing with Groupon

Is your business thinking about running a Groupon promotion, but concerned about how to better retain customers after the promotion? Derek Johnson, CEO of Tatango discusses how your business can use SMS marketing to increase customer retention after a Groupon promotion, resulting in a more successful Groupon promotion.


Video Transcription

Hey everyone, Derek Johnson with I’m going to be talking about how to use Groupon with SMS marketing. First thing I want to say is Groupon is a great way to drive customers to your door, but it’s a horrible way to have loyal customers continue to come back. This is actually Groupon’s statistics. We didn’t make this up. This is Groupon saying it. 78% of customers that come through the door and redeem, let’s say, your business’ Groupon will never come back to your business. They’re one-time customers. That means you’ll be able to keep 22% of those customers, which is pretty low, as repetitive loyal customers to your business.

How can we fix this with SMS marketing? The key is, when you issue a Groupon, every single person that comes in to redeem a Groupon, all your customers or potential customers, you want to collect their mobile phone numbers and put them into an SMS campaign. The difference is, if you look here at our numbers, let’s say we have 900 Groupon redemptions for your business and you times that by 22%, again that’s how many customers are going to be loyal customers and come back to your business. That’s going to be 198 loyal customers. That seems kind of off. 900 customers you have to serve to get only 198 loyal customers. I think you can do better, and with SMS marketing you can.

76%, this is Accenture number, 76% of customers want to receive SMS promotions if they’re relevant, if they’re from a business that they like. If you times 900 Groupon redemptions or customers by 76%, you’re talking about 684 loyal customers. Now that sounds like a deal. 900 Groupon redemptions and you get 684 loyal customers that come weekly to your business. That’s three times more customers than just doing a regular Groupon campaign.

If you’re looking to do a Groupon campaign, or maybe you just started doing a Groupon campaign, the key is to incorporate SMS marketing. You’re going to get three times more loyal customers. Loyal customers are the ones that pay the bills consistently every month for you guys. Also, it will allow you to be successful with your Groupon campaign. Again, three times more people, who’s going to argue with that?

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