Social CRM and social couponing are kind of one in the same. Social customer relationship management has to begin with acquiring a customer, through social means, to manage and social couponing is the social arena in which to acquire the customers that you seek.
The online world is all too familiar with social couponing. Sites like Groupon and LivingSocial have changed the way of advertising for the companies that have had an opportunity to utilize these services.
And for the many companies that have used them before, they never really get the jist of what a valuable services these companies are.
I have read numerous blogs and comments about how, for some, these sites have ruined their business. About how customers come in just to use the coupons and never return, and for others, they have even been put into debt as a result of offering, through the coupon, more than they could afford to honor.
Many complain about not being able to make a profit after they pay for the service and honor the coupons that are being brought into their establishment as a result.
The misconception of what these companies are is all too prevalent in the minds of businesses that seek out the services of these couponing companies.
And for those that are not aware of what that misconception is, I will be more than happy to lay it out for you.
Groupon does just what they are hired to do, get the customer to recognize that your business exists, entice potential customers with an offer that they cannot refuse, and get them through the door. That is social crm.
By no means should those social coupon sites be used as the only means to acquire new customers or as a source of profit.
Yes, if your coupon is good enough you may be able to make a profit but, for the most part it is not meant to be profitable.
And furthermore, your coupon should, as a minimum, cover your cost of goods and services so that you will no less than break even. And if you don’t break even at least know what your margins are, so that you can plan for the cost of doing business through this form of advertising.
Your budget for advertising should be implemented or undertaken through the use of a service like this.
Advertising can't guarantee results but this can. Click here for more...
“I would recommend this program to absolutely anyone because it has definitely created loyalty! There is so much competition in larger cities and when we opened our second location in Burlington, IA we needed to do something to set our bakery apart. I can think off the top of my head at least 15 customers who eat here 4 days a week just because of the card, where as before they would come only once a week. It has really worked well for us and has created a word-of-mouth to where we don’t even have to “sell” it anymore. It has been a win-win for both our business and our customers.”
* Martha Wolf
The Ivy Bake Shoppe & Café