Maybe I have been living under a rock. I spend my entire day online – mostly. I shop online – mostly. My connections with friends all over the country are now online. (used to be a long distance phone call was special because of the cost – now its because of the time – but I digress).
I had heard of Woot.com and their “flash deals” when they first launched, but never thought much about it after that. Then last week in Mossberg’s column in the Wall Street Journal (yes, I do still read a newspaper) was a profile on Groupon.com and LivingSocial.com as well as a company called Tippr.com (that only currently works in Seattle). What all these companies have in common is group aggregation buying power. While they all work differently, the principle is the same – they get a group discount up front, then go get the group. Social promotion at its best. Now if you are consumer, this is great. If you’re a business that can cater to consumers, even better.
Think about it this way: How much would you spend to have 25, 50 or 100 new customers walk in the door? Well, what if you gave them ½ off your entry level offer if they paid in advance and then you could capture their email and other contact info to keep marketing to them to come back? You'd be nuts not to try it. It doesn’t matter if you are a restaurant, a retailer or a service business – customer acquisition is probably your highest cost. Here’s a way to get paying customers in the door!
Again, maybe I have been living under a rock and you all know this, but it was news to me. Have any of you tried this as a consumer? As a business? What do you think of the concept?