Most everyone knows about Groupon®—the third-party service that provides customers with special offers and deals, and splits the revenue with a variety of business partners. At first glance, the potential sales volume boost that partnering with Groupon can provide is attractive to medical spas and medical aesthetic practices, especially given how many eyes it can bring to your practice. With this in mind, using Groupon seems like a no-brainer, right? Wrong.
The excitement of Groupon’s claims to increase a customer base often overshadows the potential risks that are overlooked by business owners. Groupon is designed on the belief that a new customer, having capitalized on a Groupon deal with a certain business, will suddenly become a loyal customer to that same business. At Acara Partners, however, we believe that Groupon is not a vehicle for sustainable customer base growth. The rash and open-armed embrace of Groupon doesn’t attract users seeking trusted brands; rather, Groupon users are looking to make a singular, calculated purchase. These customers are not swayed by brand equity, but by bargains. Don’t hold your breath expecting any reasonable percentage of Groupon first-timers to come by next month for their regular facial – unless it’s accompanied by a similarly steep discount.
At Acara Partners, we have and will continue to discourage the adoption of Groupon by business owners throughout the medical aesthetic industry. Even with Groupon’s recent amendments to its policy, we cannot recommend the service to businesses seeking long-term success and brand growth. There are many unique selling positions to claim as your own, and striving to be the “low-price” or “value” brand has, in our experience, been a consistently disadvantageous strategy to undertake in the marketplace. Promotional discounts are a catalyst for success when used correctly and appropriately, and by no means are “packaged” services discouraged. Don’t let Groupon dictate your business model, instead ask the experts on our team on how to lead you to new heights.
Want to learn more? Please reach out to Colleen Acunzo, Managing Partner, 203-488-0028 x305 or email at email@example.com for more information.