Group Buying – Part of Your Marketing Strategy??

Group Buying – Part of Your Marketing Strategy??:

I first heard of ‘group buying’ while researching for an internet marketing paper in December of 2008. My team dedicated a tiny paragraph to ‘daily deals’ describing it as an online trend that marketers must watch out for. Three years since, I find myself in the middle of a group buying craze that has touched marketers and consumers alike, especially in the Western markets.

Here are three reasons why group buying deserves a place in your business plans and marketing strategy.

A Marketing Channel

For local and global businesses alike, group buying assures a completely captive audience that voluntarily signed up to receive a daily deal. If anything daily deal websites guarantee a reach that is scientific and measurable via email open and conversion statistics.

In addition, a great deal is more likely to be shared online and a brand has an extra shot at going viral!

Example of a cinemas deal that went viral and sold over 10K tickets

Return on Investment

There has probably never been a more sure shot way of increasing foot falls to a restaurant, subscribers to a publication and in general new customers to any business.

A ‘deal’ is all the more relevant and easy to execute for online businesses

Say, Marie Claire becomes available at half price on a site. When the daily deal reaches the inbox of a million people, at least ten thousand people check the deal out and a thousand of those click BUY.

Now that is a guaranteed thousand new subscribers that no other form of promotion can guarantee!

In fact, according to the recent group buying survey, conducted here in Australia, about 82% of small business realize that a ‘deal’ brings better return on investment than an advertisement in a publication, radio or television.

Customer Loyalty

While there is truth to the statement that daily deal sites bring a tide of cherry pickers to the business, no customer can be unwanted.

In addition if a restaurant or a spa delivers the most outstanding service, the non-cherry pickers will return and even spread the word.

Depending on the group buying sites’ database quality every deal will generate a significant percentage of customers who are out there to try a new spot, enjoy a new experience and will return based on the service the business has to offer!

Repeat business depends on the service the business provides

So whether it is breakfast, unlimited yoga, teeth whitening, speed dating or remedial massage you are promoting, it seems like it is time to seriously consider a ‘deal’ to put your brand out there, improve awareness, increase word of mouth and reach out to new customers.