foodbizwiz - Latest Comments

Re: The Groupon coupon in your restaurant

coupon code — Sat, 27 Aug 2011 15:43:49 -0000

Digital processing, affect how people spend their money. It is the amount from your average fare. You want to encourage new customers to spend a little more, they get preferential treatment, to help introduce a few more dollars in the promotion.

Re: The Groupon coupon in your restaurant

Kraft Coupons — Sat, 16 Apr 2011 23:06:42 -0000

Groupon works for me almost evey time, great way to get amazing deals

Re: The Groupon coupon in your restaurant

misterfnygy — Tue, 25 Jan 2011 13:44:23 -0000

I like your idea of an ongoing discount. But, you may be doing the same thing and conditioning customers to expect lower prices. But then again, if you can drop your prices 20% and do enough business to make money it would be a good move.

The real trick is to get as high of a retention or return rate as you can. Use the deals to get folks in the door then use smart internal marketing to get them back.

Tying a loyalty program into a referral program as you mention is a killer strategy!

Re: The Groupon coupon in your restaurant

Gerardo Ritchey — Sat, 22 Jan 2011 05:18:17 -0000

I know that lots of the feedback from groupon has been that once a restaurant runs it, their traffic spikes, but their retention rates are very low. It seems like the vast majority of people are just going to these places because they got an outlandish deal.

With all the mass discounting/deals craze that's going on, particularly for restaurants, I'm curious whether a longer term deal with a smaller, yet significant discount world work better. Say something like, 20% off on each visit, for 3 or 6 months, and if you bring your friends, you all get your iced tea or soda for free, or something like that.

There's obviously loads of logistics involved on how to set it up and track it, but wouldn't this offer a better shot at getting someone to step in through the door multiple times, and give you multiple chances at converting them in to regulars.

Re: The Groupon coupon in your restaurant

misterfnygy — Mon, 13 Dec 2010 22:26:28 -0000

Thanks! All good points for sure.

I'm new to this "version" of my career. Spent many years in foodservice management. Your point about new customers discovering new businesses is spot on. Those people are golden in a promotion like this, as long as you make them happy!

Re: The Groupon coupon in your restaurant

Current — Mon, 13 Dec 2010 17:53:12 -0000

Hi Clint,
Seems like you are just starting out. But a good start, esp. leveraging the NYTimes comments section and creating a niche of Groupon consulting and Social Promotion.

I am sure you have realized that it is helpful to dissect the Groupon audience and mange each segment accordingly.

1. Current users excited at the prospect of saving money.
a. Loyal (should be discouraged gently by giving them a better deal or throwing in extra stuff. no way should they feel the attitude. it should be like - you are our first class customers, why are you in coach? let me give you free upgrade and keep you in first)
b. Casual (most suited for enticing into loyalty programs)
2. New users who only go after deals that are discounted
a. those who only go for discounted goods/services (a large number that can be used as filler for leaner times, but everything else is wasted)
b. Users who wish to discover/sample the service at low barrier of entry (the most effective use of your dollar for upsell, future discounted enticements. not ready for loyalty yet and may get turned off by hard-sell. Try to get to a second date with them)

You should be able to classify users and train your staff and tune your strategy to deal with each one separately.

If it is not your loss leader, then the only other function it has is filler. Businesses have to be clear which one out of the two. Because the implementation has to be different.

Restaurants may start a Groupon section (or Groupon hours like Happy hours), there may be Groupon times for services or Groupon associates (your lower cost ones)...