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Tips to make group buying work for your business

As consumers continue to show their love for group buying deals, more and more SMEs are listing deals on coupon sites – but how can you ensure this works for your business?

According to LivingSocial and Jump On It ANZ CEO Colin Fabig, there are a number of ways to ensure you best utilise these sites for your business.

“Small businesses recognise that the hardest part of business is generating leads. Daily deals sites carry out this hard work for you – but you need to be prepared for the new business that comes knocking,” he said.

Fabig suggests each business structures its deal based on the amount of money that’s coming in.

“With alternative marketing channels coming at a hefty price tag, daily deals offer good value,” he added.

With this in mind, Fabig has the following hot tips for using group buying deals in your business:

1. Understand it’s a promotional tool:
It’s best not to treat daily deals websites as a revenue stream. Promotions are designed to bring in new customers and generate brand awareness.

2. Do your homework: Know the date the deal will go live. Daily deals sites can reserve the right to post your deal at any time, but staying in close contact with them can save you from any inconvenient surprises.

3. Know your deal: Know the full details of the deal – what is being promoted and brief your staff. Don’t rush customers through – what you are seeking is return business.

4. Read the fine print: Understand your commission on each deal, and how and when it is paid to you.

5. Man your phones: In the first week, and especially on the first day, ensure your staff are briefed to take calls and make bookings.

6. Ensure you have the resources: Think about hiring additional staff to take bookings in the first three days, and prepare a script for them. This internal process is just as important as any external marketing.

7. Don’t let down your existing customers: Ensure you are prepared for the extra business. You need to provide the same high quality service to your existing customers. They will notice if you don’t.

8. Develop an ongoing strategy: Before the deal goes live, have sales and marketing strategy in place to create loyalty and maximise repeat bookings. Don’t use daily deals in isolation.

9. Take ownership of the process: Make it work for you on your terms. Only take on what you can handle.

10. Track the success of your deal: Collect information on purchases new customers make beyond the deal. This will help you determine the success of the deal and whether you should do it again.

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Lorna Brett

Lorna Brett

Lorna was Dynamic Business’ Social Web Editor in 2011/12. She’s a social media obsessed journalist, who has a passion for small business. Outside the 9 to 5, you’re likely to find her trawling the web for online bargains, perfecting her amateur photography skills or enjoying one too many cappucinos. You can follow her on <a href="https://twitter.com/#!/dynamicbusiness">Twitter @DynamicBusiness</a>

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