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Is social buying a good fit for your business?

Social buying is pretty hot right now. Sign up for 'Groupon' or other social buying sites and you will be bombarded with screaming deals on goods and services in your geographic area. Sounds like a great way to boost business. It is right for yours? It can be - if you use it wisely based on your strategic direction and tactical objectives.

Social buying is based on volume. Businesses provide a substantial discount on a product or service to members of the network. The 'offer' is based on achieving a minimum number of purchasers. When the minimum is met, the offer is "ON". From a revenue perspective, the assumption made is that additional volume generated will exceed the cost of the discount provided. That depends on your strategic direction and your tactical objectives.

Some reasons to participate include:
- Attract new customers
- Generate trial of a new product / service
- Increase traffic to your location (awareness, exposure to your other products and services)
- Move inventory
- Fill white space (generate business during typically slower times)

Sounds great right? Now we just have to develop an offer that will deliver on your objectives - here lies the challenge. Fortunately, you have lots of variables to play with to ensure that you are not simply discounting sales to your existing customer base. Product, time of day, location, and valid dates are just some of the tools that you have to craft an offer that meets your needs.

When used strategically, social buying is a really exciting new marketing tool that can help to boost business. If you are thinking this might be right for your business, give me a call. I would love to work with you to ensure your business gets the boost you want.