The latest and greatest?

Groupon has become a huge phenomenon for B2C businesses. By combining old-fashioned coupons with social networking, Groupon has created a new genre by offering these businesses some great benefits: a very large audience, qualified offer recipients and a fast infusion of cash shortly after the offer runs. This doesn’t sound like it has a lot of downside, does it?
The problem can occur when all those happy Groupon customers want what they have paid for in advance all at the same time. The flood of requests can overwhelm most small to medium sized businesses. If the business can’t deliver their new Groupon customers what they’ve already bought when they want them these new customers are going to be disappointed.  Disappointed customers are not inclined to continue using a vendor who has disappointed them.

What this scenario reveals is a risk of providing a lot of goods or, more likely, services at a deep discount with a lessened possibility of a significant lifetime value that repeat customers offer a business.

The point of all this is not to avoid new opportunities like Groupon or other social networking approaches but to understand the risks so that a proper strategy that benefits your business is developed and implemented properly.

sem[c] works with its clients to harness their internal strengths to make this aspect of Internet marketing work to the business’ best advantage.

To find out more about how we work for your business, visit our website, email us, call us and tell your friends!