Tag Archive: local marketing

How Do You Advertise to Nightclub Goers?

The best ideas are often the simplest, and this is one of those where you think, ‘why didn’t I think of that?’.

If you’ve ever been to a nightclub (who hasn’t), you would have had your hand stamped as proof of admission or to gain re-entry to the club.

Some bright spark took that unbranded idea and turned it into advertising space, connecting nighclubs and companies targeting late night revellers, such as cab companies.

Australian Passout Marketing is one such company giving them exposure to over 2.5 million people aged 18 to 32 each year, and venues are given a cut of ad revenues.

The Enigma nightclub in the Hotel Marriott in India stamped the phone number of the local cab company on club goers. It proved so effective the idea was copied by the Mumbai police and other clubs.

Does your business target late night revellers?

Full story at Springwise »

Related: Personal Stamp Ad »

Pappa John’s Ingenious Peephole Ad

So, how do you get your product in front of your customers in a way that they can’t ignore?

You do what Papa John’s Pizza did. They stuck their ad in front of front door peepholes, so when you look through the peephole, it looks like a Papa John’s Pizza delivery guy is delivering a pizza to you.

Created by Saatchi & Saatchi, Peru, this clever, yet simple idea in promoting Papa John’s Pizza won gold at the Cannes International advertising awards.

Ingenious!

Could your product use this clever idea?

Source: The Cool Hunter »

What Did a Cafe Owner Learn from her Failed Groupon Campaign?

Posies Café owner Jessie Burke wrote a blog post about losing $8,000 on a Groupon campaign, after the Portland, OR-based eatery offered $13 worth of food for $6 on March 9, 2010.

“It has been the single worst decision I have ever made as a business owner thus far,” she wrote in her blog.

Here are some of the takeaways from her blog post:

  • Over the six months that the Groupon coupon was valid, Jessie met many, many wonderful new customers;
  • Jessie also met many terrible Groupon customers that didn’t follow the Groupon rules: they used multiple Groupons for a single transaction, and argued with her about it with disgusted looks on their faces;
  • Some Groupon coupon customers tipped based on what they owed – 10% of $0 is zero dollars, so tossing in a dime was them being generous;
  • The interactions with the few bad Groupon customers jaded her staff; and
  • Jessie believes that service industry businesses, such as hairdressers and beauty clinics, do quite well with Groupon coupons because it is just the cost of time – they are not paying for a product for resale.

I think Jessie’s blog post offers some valuable lessons for all small businesses who are considering a Groupon-like promotion.

These lessons include:

  • Groupon-like promotions can deliver a rush of new customers;
  • Some coupon-buying consumers will try to take advantage of the rules and use multiple coupons for a single transaction;
  • Coupon-buying consumers may not tip as well as regular customers;
  • You must inform your employees of what to expect from coupon-customers: If your employees have a better expectation of what to expect from coupon-customers (such as less tips), then your promotion is more likely to be a success; and
  • Seriously consider whether a Groupon-like campaign is right for your business? Would the flood of bargain-hunting coupon-consumers use up resources which would otherwise be used to service your regular customers?

Has Jessie’s story made you reconsider whether you should run a Groupon-like promotion?

Full story at the Posies Cafe blog »

Study: Groupon Unprofitable for 1 in 3 Advertisers

According to a study by Rice University’s Jesse H. Jones Graduate School of Business, Groupon promotions were unprofitable for 32 percent surveyed for the study, but they were profitable for 66 percent of the businesses.

More than 40 percent of the respondents indicated they would not run such a promotion again.

Utpal Dholakia, author of the study and associate professor of marketing at the Jones School, conducted surveys with 150 businesses spanning 19 U.S. cities and 13 product categories that ran and completed Groupon promotions between June 2009 and August 2010.

Other findings include:

  • The study provides evidence that “satisfied employees” is the most important factor for the Groupon promotion to work successfully for a business. If employees remain satisfied through the promotion, the likelihood of its profitability is significantly higher.
  • The percentage of discount offered and the number of Groupons sold did not predict the deal’s profitability, nor did the percentage of Groupon users who purchased beyond the Groupon’s value or purchased again at full price.
  • Because the Groupon customer base is made up of deal-seekers and bargain shoppers, they might not tip as well as an average customer or be willing to purchase beyond the deal, so employees need to be prepared for this type of customer and the sheer volume of customers that might come through.
  • Groupon promotions offer the most benefit for businesses in which the promotion does not cannibalize sales to existing customers.
  • Among the service businesses (restaurants, educational services, tourism and salon and spa), restaurants fared the worst and salons and spas were the most successful.
  • Businesses with unprofitable promotions reported low rates of spending by Groupon users beyond the Groupon’s face value and low rates of return to the business again at full price.

Dholakia outlined some strategies for success:

  • Use promotions for building relationships instead of creating one-time transactions. Instead of offering $60 worth of food for $30, parcel it out to offer $20 worth of food for $10 over the customer’s next three visits.
  • Don’t offer discounts on a total bill; rather, offer a specified discount for various products or services.
  • Choose items judiciously to sell unpopular items or use unutilized services through the promotion.

Is your business right for a Groupon-like daily deals marketing campaign?

Download the complete study at the Social Science Research Network »

College Football Team Uses Groupon to Fill Seats

The University of Colorado used Groupon to try to fill some of Folsom Field’s 53,000 seats for this Saturday’s game against Iowa State.

The campaign ran on November 3, offering $65 tickets priced at just $15. Up to eight tickets could be purchased per individual buyer. They looked at the deal as a loss leader to recruit parents with children who couldn’t normally afford entry to a game. Once inside the stadium, they knew people with ticket vouchers would spend on popcorn, hot dogs, nachos, and beverages.

The effort targeted a subset of Groupon’s Denver area e-mail audience, which totals 270,000 subscribers. They were hoping to see sales reach 2,000 tickets. They didn’t quite get there, but still moved 1,177 tickets in less than 24 hours.

The Buffaloes from Boulder, CO, are not the only college football team to employ Groupon this season. The University of Kansas ran a $60-tickets-for-$25 deal on September 21 in one of the more recent examples, selling 913 tickets for a Novomber 6 Jayhawks match-up against Colorado, in Lawrence, KS. And in August, Boston College sold 2,762 tickets on Groupon, while North Carolina State moved 1,362 tickets.

Professional sports teams are testing Groupon, too. The Chicago White Sox, Kansas City Royals, and Cleveland Indians each ran one-day campaigns during this past MLB season. And on November 6, the New Jersey Nets sold 989 vouchers ($100-tickets-for-$35) while giving area fans a choice of up to five games this season.

If you trouble filling seats for your next event, you might want to consider running a campaign on a group-buying site like Groupon to fill some seats.

Full story at ClickZ »

Groupon Launches Groupon Stores

Groupon has launched Groupon Stores, a self-service platform that businesses can use to set up virtual store fronts to promote and run their own deals.

Groupon Store highlights include:

  • Run deals within a few days. Groupon have to verify your business, which usually takes one business day, and review your deal (if it’s a promoted deal), then it can run.
  • You can run as many deals as you like.
  • Email/Twitter/Facebook promotion integration.
  • Online Groupon redemption system.
  • There’s no upfront cost. For promoted deals you get 70% of each Groupon sold. For non-promoted deals you get 90% of each Groupon.

Compare that to Groupon Deal of the Day deals which typically take about a month to set up, and cost 50% of each coupon sold.

Oddly enough, I was brainstorming this idea this morning just before I came across Groupon Stores. My idea had a couple of additional features:

  1. A location-based Digg style page where users can vote for deals.
  2. An e-gifting feature that allows consumers to send coupons as gifts, via email, Twitter, post on recipient’s Facebook Wall, and even send a real gift card.

According to Shop.org, one-third of consumers spent between $50 and $200 total on gift cards purchased online, while almost two-thirds of gift cards purchased online averaged between $10 and $50 each.

That suggests that it makes sense to price coupons under $50. A gifting feature would allow convenience-seeking consumers to send gifts that cost as much as $100 for under $50.

Visit the Groupon Store to claim your store »