Blog: The Good, The Bad & The Groupon

I’ve been busy redeeming all of the Groupons I bought last year before they expire – and I bought a lot of them! So I’ve had an opportunity to do a bit of research on the way retailers treat Grouponees.

And I gotta tell ya – it amazes me how different the experiences were from one service provider to the next, especially among those in the same industry.

It is as if some companies “get it” – as in, realize that the purpose of offering a Groupon is to attract more long term customers, while other companies consider the Groupon as just a way to make some quick cash. And the faster they can get the Grouponees out the door the better.

I bought two Groupons last year from two different Day Spa providers, each for a series of three facials. Both Groupons were priced the same at $99. Here are the details of my visits with …ummm….let’s call them ABC Spa and XYZ Salon.

About two months after purchasing the Groupon, I called ABC Spa to make my first appointment and was put on hold. I waited about 15 minutes, then hung up and called back. I was put on hold again. This time, after about 10 minutes, I was disconnected.

I tried to make the initial appointment again later that week and was put on hold again. But this time, after about 5 minutes a young man picked up the phone and asked how he could help me. I told him about the Groupon and he responded with “Have you been to ABC Spa before?” I replied “No, but I have been trying. I keep getting put on hold”.

He didn’t laugh.

He said they were busy because of so many Groupons. When I told him I had a Groupon too, he told me I had to bring it with me or I would have to pay for the appointment. He also told me that if I ever missed an appointment, my Groupon would be forfeited and I would have to pay for the missed treatment.

He then gave me a run down of other actions that would result in the loss of my Groupon. I felt like I was in one of those prison movies and was getting a list of  infractions that would earn me a “night in the hole”.

When I showed up for my first appointment, nobody was at the front desk so I just sat down in the waiting area. After about 15 minutes a woman came around the corner and asked me my name. She then asked me to enter her office where I sat across her desk and listened to her recite a memorized sales speech.

I got the feeling that I wasn’t allowed to interrupt or she would lose her place and have to start over.

To make a long story short, once I said I wasn’t interested in upgrading my Groupon to a premium service, I was ushered back to the waiting room.  That facial and the two following were quick, sloppy 25 minute affairs that I could have easily done without. And although the staff were not rude, they were also not very pleasant, welcoming or even slightly happy to see me or anyone else.

Now for my experience with XYZ Salon:

I called XYZ to make my initial appointment and a pleasant voice answered on the second ring. I was told that they had a cancellation the following day and if I was interested, I could have it. You bet I was interested. I told her I was redeeming a Groupon and her response was “Great! You are going to love it here!”

When I arrived for my appointment, I was immediately greeted by an upbeat young woman who asked about my medical history and had me sign a HIPAA form – but no sales pitch. I waited only a few moments before I was called back for my facial. It was a complete hour-long facial with no pressure to upgrade.

The aesthetician was extremely pleasant, knowledgeable and thorough. So much so that I asked her about specific products and after she told me about them, I bought them. No hard sales pitch required.

My next two appointments were as smooth as the first. So I booked a fourth and fifth …at full price.

The moral of this story is that if your company is considering using Groupons or a similar promotional tool to grow your business, decide on a plan of action first. Don’t just sign up to grab some quick cash; it could backfire if you end up with a few hundred unhappy, ex-potential customers.

Make decisions about how many Grouponees you can realistically serve …e.g. don’t sell 500 pizza Groupons if you have a staff of two, and that includes yourself. Set a limit, or hire some temporary help so phones don’t go unanswered and opportunities are not lost.

Plan to convert Grouponees to customers. There is nothing wrong with upselling but don’t treat Grouponees who don’t buy as inferior to those who do. It’s not that they didn’t buy at all…it’s that they didn’t buy that day.

Plan to follow up with each Grouponee in an effort to convert them to a customer. Thank them for buying the Groupon and for giving your place a try. Add them to your mailing list and/or e-newsletter list.

Happy Grouponing!