Several daily deals websites have emerged over the years, but how do you know which one is right for your salon? Each site has there pros and cons. In order to determine which site will benefit you the most, you must decide on the type of customer you want to attract and the amount of freedom you need in marketing your discounted services.
Every salon owner envisions a successful salon with loyal clientele. Sometimes your salon can get caught in a rut and subscribing to daily deals can revitalize your business. If your purpose is to temporarily create a buzz around your salon and a surge of new clients, then Groupon is the better choice. A recent study proves that Gro
upon deals are not effective in building customer loyalty. According to Utpal Dholakia, the study’s author and professor of marketing at Rice University, “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.” Therefore, this site is ideal for a quick boost in revenue such as a reopening or special event.
If you’re looking at a more long-term approach to building a consistent clientele, then Signpost will be a better option. Stuart Wall, CEO of Signpost, explains why his site provides more benefits for the merchant as opposed to the customer. He states, “We believe it’s a deal marketplace where users are encouraged to post the great finds they discover in their neighborhoods while merchants are encouraged to experiment with offers that work on their terms.” Not only does your salon have more control over the discounts you offer, but also you receive validation from the Signpost community proving your deal is good to potential clients.
As a salon owner, it’s your responsibility to investigate all of your marketing options and strategically determine which is the most beneficial. Heather Lemere of salonsuccessstories.com summarizes what you should consider before adopting these daily deal tactics. She advises, “The determining factor of whether your campaign is successful or not lies within your offer, your internal marketing strategy, and your ultimate goal for your new clients. The biggest benefit with using mediums such as Groupon and Living Social is their ability to reach mass numbers of people in your area at no cost to you.”
We’ve just scratched the surface of this debate. Tune in next week to see the financial pros and cons of both Groupon and Signpost!
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