Groupon – To Use? Or Not to use? This will answer your question..
Many budding and existing entrepreneurs, small businesses and even fellow therapists will probably considering using a marketing tool like Groupon to help get customer awareness. I did too… therefore, I now write my experiences to give you the information to make an informed decision. You already know that any new business venture should be accompanied by a business plan, a marketing plan, market awareness and some due diligence.
There are several of these social media/marketing platforms in our country now and each of them have different trading terms that can either harm, hamper or assist a new business venture. So far I have used two of them… GROUPON and WOWCHER.
They all work by marketing your product or service at a considerable discount (and as far as therapists are concerned there are a few newbies out there trying to undercut the competition to a ridiculous level that neither helps them nor the industry, but that’s for another blog..) They then want to take their cut from your considerably discounted price. This can vary from provider to provider and is usually in the banding of a 50/50 split or a 60/40 split but can be negotiated to 65/35 split in your favour. So if your fee or product price is usually £185.00 you can expect to reduce that to £49.00 and after they have taken their cut you will usually get circa £19…
Now… this is where the due diligence comes in and you need to have informed decisions to be able to choice which ones will assist your business and which ones will harm it..
In my experience, I have had more response from Wowcher. I have used them 3 times so far and they pay regularly without delay. They pay twice a week by BACS, on a Tuesday and a Friday, so for cashflow (which is important for all businesses and especially new ones) is excellent! The demographics and target customers are better with Wowcher and the amount of purchasers that complete their transactions is higher with Wowcher.
Groupon, whilst probably the oldest in the market and probably the largest as they are in many countries hasn’t yielded as many clients for me. It didn’t sell as many deals and of the deals that did sell, a smaller number of purchasers actually completed the transaction. Furthermore, their payment terms are normally 10 working days from when you submit the codes on their partner site. However, I contacted them after the 10 days to say that I hadn’t received any money yet and they told me that it was in the system to be paid. After another week I contacted the representative that signed me up and he must have forwarded my email to accounts. They then contacted me to say that my agreement had become corrupt and they didn’t know how it had happened. They were going to get in touch with Germany and would call me on Monday (today being Thursday) and arrange for the payment to reach my bank account for Thursday.. Monday came, now communication from them. I called on the Wednesday to see whether the payment was going to hit my account the next day as promised. I was told then that they allegedly sent me an email on the Monday and left me a voicemail to tell me the situation. Neither communication was received by the way. Today, the Thursday when I was going to have the money in my account, a message was left for me to say that the situation has not been resolved but because I have been waiting so long for the money they will make a payment on Monday… I wait with baited breath.
Now, for you to make your choice, wisely……