Why promotions through Groupon and Amazon Local may not be the right move for your business.
“Daily deal” promotions can certainly promote your name and services to a large pool of consumers, but are you truly building a loyal clientele base and increasing profits?
In the world of aesthetic medicine, loyalty is incredibly important. You want to build a lasting relationship with clients, ensuring that they will return to your business for their beauty needs. Unfortunately, we have found that individuals who purchase these special deals are mainly interested in the savings; they will simply chase the next promotion once yours has expired. These consumers fail to realize the value of your services because they focus on the “sticker price.” Their loyalty will last as long as the promotion does.
Undoubtedly, a business can see increased visits during a promotion, but that doesn’t always translate into increased profits. Be cautious when entering into contracts with “daily deal” providers and be sure to read the fine print carefully. Its simple math: if you are discounting a service by 50% and Groupon is splitting the remaining profit with you, that leaves you with only 25% income. However, in the process to attract and attend to these clients, you have to cover 100% of the goods and operating expenses. Can you afford to deeply discount your products and services and potentially not gain a devoted patron from it?
While “daily deals” have become increasingly popular, we emphasize that promotions are a marketing tool and should never be used as your entire marketing plan, and deep discounting is never recommended. Having an up-to-date and responsive website, frequent social media outreach and optimization of your search terms are proven methods to attract a loyal client base. Finally, don’t forget to provide outstanding customer service because word of mouth is key!