Data Driven Business Solutions, LLC
Imagine the horror when we presented this truth to a small business client. The data speaks for itself. Sadly, this client isn't alone. Chances are, you are in a similar predicament if you've offered your services at a deep discount without promotion pre planning.
You, the small business, are the financier of what Forbes called the fastest growing company ever in history. Yes, faster than Apple.
The Wall Street Journal quoted Groupon to have undergone a 2,241% revenue growth and 2462% profit growth. Yes most people need to read that again to really digest it. If someone had measured the growth of sliced bread, We're willing to bet it would have fallen short of 2000%+. If Groupon was even a bit effective at growing your business as they claim, 8 out of every 10 small business would not still be folding within the first 18 months. And it’s not just Groupon but they do occupy 60% of the daily-deals market.
Living Social and others are experiencing unprecidented growth as well. Their entire business model works well because, post-recession, consumers generally jump at discounted products and services. Maximization is the name of the game. So you see that delivering deep customer discounts of up to 75% and ensuring profitability of your business are mutually exclusive. In other words, it’s usually one or the other. By dangling the immediate thirst-quenching revenue, their business model- without proper planning – stifles small business prospects rather than create and sustain them. Without maximum capitalization of this new traffic, merchants end up running periodic campaigns, giving up unnecessary margins while driving down customer value proposition. Unfortunately, the cost of the negative impact on your equity is sometimes difficult to reverse in a profitable way. If you have already run a Groupon promotion, we can still help create and maximize the additional touch points to ensure you never have to make such a poor decision again. With our Pre and Post Promotion service, a Business Intelligence Strategist will work with you to calculate the real cost, margin, and return of every promotional campaign. But that’s just barely scratching the surface. The real value comes from capitalizing on those new insights to implement initiatives aimed at making the right business decisions. There has to be a tactical, deliberate plan to every promotion of business decision you take as a small business. Why else do elite enterprises retain teams of marketing analysts to focus on just this?
But Let’s face it, using the likes of Groupon services is not all bad. No other mechanism today brings your business face to face with the volume of audience with disposable income. We simply hold truth that without a well-strategized plan, most small businesses continue to create a dependence on what they perceive to be quick revenue surges.