Issue link: https://www.massageandbodyworkdigital.com/i/918051
Why does Groupon have such a bad reputation? When it started out, Groupon would send deals to members in an email blast. This resulted in having more people buy the deal at one time than an independent massage therapist could handle, making it difficult to honor vouchers and rebook new clients. Now, massage deals are listed on the Groupon site under "Beauty & Spas," so consumers looking for a massage can search there. This makes the influx of new customers much more manageable. Another reason Groupon has earned such a low rating within our industry is the way it structures campaigns. Groupon reps are responsible for selling vouchers, not making sure they set up the best deal for your practice. These are salespeople working on commission who are trained to make the most money for Groupon. Businesses grow and expand by increasing revenue. It's not blatant manipulation or sabotage. It's simply how the company operates. Recent ad campaigns showcase Groupon's capacity to introduce customers to diverse experiences with the variety of offerings on its site. Of course, the emphasis is on saving money, which is a proven motivator to get people to try something (or someone) new. So, what does it take to get Groupon to work for you? It boils down to a few key business strategies, a willingness to let go of limiting beliefs, and being steadfast in your commitment to do what's right for your practice. FOCUS ON THE BIG PICTURE Using Groupon as part of an overall marketing plan isn't meant to be forever. Rather, the intention should be to use it just long enough to gain some momentum and confidence. The part that turns off so many business owners from using Groupon is the small earnings per voucher. Typically, deals are offered at 40–60 percent off the regular price. Groupon then pays merchants 46 percent of the sales from their deal, resulting in compensation shy of 25 percent of your regular fee. Earning so little per massage is hard to swallow, but what's really going on is a trade of massive exposure for a highly discounted service with no cost up front to you. Since Groupon pays you the split of total sales, you get your cut from vouchers that are never redeemed (about 10 percent of sales), which increases your earnings a little more. The advantage for MTs using Groupon is that massage is one of the most popular services it offers. Sure, many buyers will only use the Groupon voucher and never return again, but that can happen regardless of how clients come to us. Massage is such a personalized service that those looking for a long-term therapist may use Groupon while they look for that perfect MT, all the while saving money during their search. Once you get a new client on the table, it's up to you to get them to return. Treating them as a cheapskate will diminish the experience they have. Focus on those clients who do return rather than those who don't, and treat every new client like they could become your next weekly regular. HAVE A GOAL Having a goal for any marketing campaign allows you to evaluate its performance objectively. Basically, how many clients are you currently seeing per week and how many do you want to be seeing? The difference is your goal. Not only does a goal give you something quantifiable to aim for, it also gives you the monthly maximum amount for your deal. This number creates a sales limit and determines where your deal will show up on the Groupon site. A higher monthly maximum will show your deal to a larger audience, while a smaller monthly maximum will only show your deal to those searching for massage. The interplay of the price and monthly maximum influences how many vouchers will sell. 78 m a s s a g e & b o d y w o r k j a n u a r y / f e b r u a r y 2 0 1 8 Getting Groupon to work for you boils down to a few key business strategies, a willingness to let go of limiting beliefs, and being steadfast in your commitment to do what's right for your practice.