Should I use Groupon to attract hundreds of people to my place?
My answer is simple. No, you shouldn't. And the reason is very simple.
It is true that Groupon could bring many customers to your business but the question that you should ask yourself is: Are these the kind of customers that you want?
Not only your profit margin will be minuscule (if any) after all the fees that you must pay to Groupon and all the (big) discounts that you must give to these customers but, by definition, you will bring people who are addicted to bargains. If your hope is to capture these customers so that they will love your place and come back to your restaurant, I have bad news for you: They won't. Instead, they will go to the next restaurant that gives them a new Groupon offer.
If you read my book Restaurant Marketing Strategies or some of the content in this site, you know how much I don't like spending money to attract new customers. Instead, try something different: Spend your marketing budget in your existing customers.
Yes, that's right. Treat your regular customers like kings and queens. Surprise them with something extra that they don't expect. Woo them with impeccable service and excellent food. Give them some free dishes or gift certificates so that they come back another time. Make your best effort to convince them (with facts, no words) that your restaurant is their favorite restaurant in the city.
Not only you will expend less money than trying to bring hundreds of cheap customers to your place, but these customers who you already have in your restaurant will come back and bring their friends and family members with them. They will become your best salesforce because people trust their friends and family members more than any fancy advertising. And, as an added bonus, they will be so happy with your business that they will express their opinions in blogs and forums all over the place.
When somebody is looking to try a new restaurant, they go to the Internet and look for reviews. If yours scores very high in customer satisfaction, this is the best advertisement that you can buy at any price.
Good luck,
Jose L Riesco
