By now everyone has heard of, and probably used, Groupon, Living Social, or one of the many sites like them. These sites all work along the same premise, they just go about it slightly differently. They offer customers the chance to purchase one significant deal each day. This allows the business to attract a large number of new customers and, hopefully, earn their continued business.
Daily deals have worked well for many businesses, but problems have been seen as well. For instance, many small business owners find it difficult to offer the large discounts that is required to utilize these coupon services. Also, with the huge quantity of deals being offered, many business owners believe customers go where the next coupon sends them rather than convert to a repeat customer. Again, this is especially difficult for a small business.
A new coupon based marketing company thinks it has the answer for small business. Constant Contact, a company used by approximately half a million small businesses to manage and create email marketing campaigns, has recently launched SaveLocal. Rather than model the marketing campaign on large scale consumer lists, Save Local targets your existing customers and offers incentives to share coupons with their social networks. In addition, the merchant controls the amount of discount offered to ensure they do not lose money and Save Local only charges $1 to $3 per coupon.
So what’s in this for your existing customers? That is up to the merchant. Some examples are an extra discount on the coupon, a percent off a future visit, or even a free item. The biggest plus is that the customer gets the incentive just for sharing! Your existing customer is thanked, by earning the incentive, simply for sharing the coupon whether or not any of their friends make a purchase.
Targeting your existing customers social networks increases the chance that the person seeing your coupon is local to your business and therefore more likely to use it. SaveLocal states that approximately 1/5 of the people responding to the deals are new customers for the merchant. Being local customers, they are more likely to be become repeat customers.
National Business Capital is always on the lookout for services which may benefit our customers. SaveLocal may be a good marketing option for small businesses to reach local customers. Take a look if you think daily deal marketing might work for you.
National Business Capital & Services is the #1 FinTech marketplace offering small business loans and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.
Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.
We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!
Megan Capobianco is the Marketing Manager at National Business Capital & Services. Megan is passionate about helping business owners along their journey - providing them with relevant content they can use in their day-to-day operations.