Thursday, October 28, 2010

Retaining the Groupon Buyer

So, Groupon is getting a ton of negative publicity. Merchant participants say that the program is a "loss leader". Well, I'm sure it is... if those merchants aren't taking steps to proactively retain the Groupon buyer.

Programs like Groupon are excellent Acquisition Marketing Strategies. But a small, locally owned business will not survive unless the "new" customer becomes a repeat customer. This is where having a Customer Retention Strategy becomes critical. Here are eight things you should be doing to retain the "Groupon" buyer.

1. Provide excellent service from the moment they enter your business.
2. Engage them in a meaningful conversation while shopping.
3. Capture their contact information - name, email, address and phone.
4. Ask for their feedback at the end of their experience.
5. Track what they purchased and what they had interest in.
6. Use the information tracked to create meaningful conversations in the future.
7. Send a "thank you" - by email, mail or by phone.
8. Create a Retention Marketing Strategy and execute it!

And, there are a few things you should not do:

1. Do not immediately add them to your email list. Wait until after you've reconnected with them three times.
2. Do not treat them like a "discount shopper". While they are entering your business because of a great deal, this first experience will determine whether or not they come back. Assume that everyone will come back!
3. Do not expect that they will come back without you having to "work" for it. While a great experience heightens the desire for a shopper to return, people are busy today and need to be reminded.
4. Don't judge a book by its cover. Not all discount shoppers are "financially strapped". Many are incredibly wealthy, but not all dress like a million-bucks. Set your visual filters aside when interacting with these shoppers.

A Retention Marketing Strategy is a set of communications strategically crafted and executed to foster loyalty. It's more than just sending email blasts and direct mail pieces. A solid Retention Marketing Strategy will create conversations and foster loyalty to your brand. If you want help creating an effective Retention Marketing Strategy, call me!

1 comment:

  1. Not naming names, but I wish one of the places I got a Groupon from had read this article. It was the only place where I was treated like a second-class citizen for using a Groupon, and the product I received is not what I believe -- or hope -- they give to their regular, full-price customers. Since I use Groupon as a way to check a new business out, needless to say, I won't be a repeat customer. However, I have been back to several other companies after a Groupon experience.