Group buying sites are becoming very popular nowadays. The idea is quite simple. These sites offer a wide range of products and services at various deals and discounts to their customers for a limited amount of time once the requirement of the minimum number of buyers is fulfilled. This guide will give you all the information you need to help your business get started.
When to Consider this Approach
If you are a local business that is just starting out, you will want to consider this approach. You will also want to consider this approach if you have excess goods. However, keep in mind that your offer doesn’t work against you, especially if you are giving out tiered offers. You will also want to keep an eye on your cash flow and carefully measure your results.
Go for the Popular Group Buying Websites
There are many group buying websites on the Internet. Make sure to go on reliable group buying sites like Google Offers, RetailMeNot, LivingSocial, Zulily and Groupon to get started. You will be able to target your audience and get a better response on these popular websites.
Set the Discount Percentage Carefully
When setting a discount percentage on one of these websites, you need to strike the proper balance between revenue retention and accessibility. Make sure to keep an eye on your customer acquisition cost (CAC) as well.
Think Over How Many Customers You Can Handle
If you are a restaurant that can accommodate up to fifty to sixty people, make sure to limit the offers to such numbers. Otherwise, you will risk entertaining an impossible situation that can be very detrimental to your brand. Hence, make sure that you know what you are getting into, set the right dates, time limits, and clauses.
Think About User Experience
When potential customers find your offer attractive, they will want to redeem it in no time effortlessly. Hence, you will have to focus on creating a positive and easy customer experience. Most people on the Internet can be very impatient and want everything to be clear, precise and efficient.
Hence, make sure to keep the redemption process simple. If you provide a link to your eCommerce website, make sure that it has a simple user interface and easy navigability. Otherwise, a visitor will not likely remain on your website for too long and might just give up. Have a trained customer staff in place that can answer queries about offers on chat or call quickly. ‘
Brand Image and User Reviews
Group buying sites usually list all the reviews of businesses from various other websites to provide users with a good user experience. Hence, you will have to increase the quality of your business performance and make sure to get as many positive reviews as you can.
The aim is to make a first-time customer want to come back to your business several times. After all, without customer retention, your business is not likely to head anywhere. Hence, make sure to have a proper customer database in place and keep track of your ROI.