How to Increase Revenue from your Groupon Deal

Perhaps you’ve just launched, or are considering launching, a Groupon deal. Naturally, you’re curious if this decision will be profitable for your business. To increase revenue from your Groupon deal, you have to have a clear marketing plan that does two things:

  • Turns new guests into repeat customers
  • Implements an upsell strategy

Statistically, the industries with the most Groupon success are restaurants, followed by grocery stores, entertainment, clothing, and accessories. Often, travel-related businesses are least successful with Groupon deals. Usually, the failure is caused, in part, by a lack of a clear action plan with stated goals. If you want to see how well your current hospitality plan is going, use our SEO marketing grader for a free assessment!

Then, consider the following when moving forward with Groupon:

HOW MUCH DOES GROUPON COST?

It may seem simple to increase revenue from your Groupon deal since it’s free to feature your business on their platform. Even after Groupon bought LivingSocial, they still decided not to charge. However, for small business owners, it may not be entirely feasible to increase revenue this way. This is because Groupon keeps 50% of the revenue from each offer. With a consistently steep promotion to begin with, travel-related business owners are almost guaranteed to lose money with each deal. However, restaurants, for example, don’t encounter this problem as they often have higher profit margins and can offer deeper discounts. This begs the question, then, why should you use Groupon deals?

TO MAKE UP BOOKINGS QUICKLY

One of the pros of Groupon is that you can create deals instantly and have them featured at any time. If, for instance, if you’re noticing that bookings are generally down, you can quickly create an on-the-fly Groupon offer to fill in those gaps.

HOWEVER, THERE ARE ALSO CONS

As previously mentioned, it’s very difficult to see much of an ROI using Groupon deals due to the amount of revenue they keep and the small profit margins for travel industry businesses. It’s also important to think about who these deals target versus who your target guests actually are. It’s no secret that Groupon customers are in search of a discount. That means, often times, you’ll be attracting deal seekers who are only interested in the bargain, but not so much your property itself. If you’re hoping to attract people who appreciate and respect your property and brand, this is not always the best way to go.

THE BEST WAYS TO INCREASE REVENUE

At Q4 Launch, we’ve worked with a lot of bed and breakfasts and vacation rental companies. Using these quick and easy ideas, you’re sure to find much more success in increasing your revenue:

1. CAPTURE BIRTHDAYS, ANNIVERSARIES AND SPECIAL EVENTS THAT ATTRACT GUESTS TO YOUR TOWN

Create a list of these occasions and develop automated email campaigns to send just before these events each year. For instance, if Valentine’s Day is approaching, promote a Romantic Getaway Package. Or, if winter is around the corner, promote amenities like your complimentary hot tea, coffee, or hot chocolate along with the fun winter sports in your area like skiing.

2. CREATE A WAY TO UPSELL GUESTS WITH RECOMMENDED ACTIVITIES

Many excursions, golf courses, and spas will pay you a 25% booking fee to partner with them. Increase your revenue by upselling to guests who seek these products or services while you help them plan their perfect getaway!

Groupon’s own research finds that 77% of Groupon customers spend more than the value of their coupon, creating great potential for upselling and adding experiences to their stay with you. This also has the benefit of improving their experience, and therefore increasing their positive feelings towards you. Positive memories of their visit almost guarantee they’ll become repeat customers.

3. DID YOUR GUESTS HAVE A GREAT EXPERIENCE? OFFER 25% OFF A RETURN TRIP BOOKED BEFORE CHECKOUT

A discount of 25% off a room is a motivating discount, and you don’t have to share the revenue with Groupon!

If customers don’t take advantage of the offer, add them to an automated email campaign that offers a return booking special 7-10 days after their stay. Include some great photos to jog their memory of how special their trip was!

4. STAY TOP-OF-MIND WITH GROUPON CUSTOMERS AFTER THEY LEAVE

According to Groupon, 72% of customers refer others. Make a recommendation as easy as possible after your Groupon guests have left. Add them to your email contact list and encourage them to follow you on social media. Keep your business top-of-mind by regularly pushing interesting content about your area, whetting their appetite to return!

5. LEVERAGE GROUPON’S OWN MARKETING CAMPAIGNS TO EARN ADDITIONAL RECOGNITION OF YOUR OWN WEBSITE

After years of marketing themselves, Groupon has acquired a high level of trust and authority in their respective industry. How can you, as a small business owner, take advantage of that to increase revenue from your Groupon deal?

Make sure the page that’s selling your Groupon offer includes links to your website. You’ll be providing additional value by giving searchers a high-quality backlink to your site. However, you want to make sure that these pages are also well optimized. Use our hospitality search engine optimization grader to see how well your site is performing. Then, schedule a time with us to discuss your very own unique analysis!

Get Your Free Website Grader Now!