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December, 2011

Groupon Can be a Serious Marketing Tool for Your Practice

By Joseph Mannella, DC

By now most of us have heard of the phenomenon known as Groupon. It was launched in November 2008 and now does business in 43 countries. Since that time there have been many other companies doing basically the same thing either nationally or just in certain local markets. Either way, this phenomenon does not seem to be slowing down and is really becoming a viable way for consumers to find new businesses and new opportunities to try them out and save money in the process.

Groupon essentially contracts with businesses that they are willing to promote to their massive email data base of consumers at no charge to the business owner. The business owner must offer a product or service at a discounted rate of 50% or more to Groupon's followers. Groupon then writes and produces the content of the email blast and schedules the date for that offer to go out. Groupon typically only sends out one featured deal of the day. Once this is promoted to the groupon followers there is either a 1-2 day window of opportunity for people to purchase the "deal." Groupon takes care of the order, the credit card processing and then sends you a detailed report of who bought your Groupon deal. The people that purchased now print out their groupon and call to make an appointment. And the last thing that happens is that Groupon sends you the agreed percentage of money collected to you in the form of a check which is typically 50%. Not bad for not putting out one penny for a promotion that literally goes out to hundreds of thousands of local consumers. But like with everything, it has its pro's and con's and variables that most don't think about when they contract with a company like this.

Is It Right For You?

The first thing to consider is if this format will really serve your business in the long run or actually hurt it?

For some struggling businesses like restaurants Groupon has not worked well for them because they can't afford to discount their food 50% unless they can get repeat business from these groupon shoppers. And that's the rub. Many people that use groupon do not return after using their deal. They hop from one deal to the next because the deals keep coming and coming.

Now in this example, if this restaurant is poorly managed, in the wrong location, has average food or dining experience any amount of half priced business won't save them. In fact, the only business they might get is this shot in the arm business from groupon and that will not sustain them. And they may find themselves relying on that model of business to just fund their existence form one deal to the next.

This would hold true to a Chiropractic business as well. Groupon should not be used as a primary model of business especially if the business is not stable to begin with. Don't forget that when you start discounting your fees it's hard to go back to getting paid your full fee. Unless you use Groupon very strategically and you have a great sense of how and when to use this new form of advertising.

Strategy: Promote a New Service

So, when is the right time to use Groupon? And for what services in a Chiropractic business are you going to discount? I believe the most strategic way to use Groupon is to use it to promote a new service within your business or any service you offer other than your main business of Chiropractic adjustments.

I think it is always a big mistake to offer huge discounts to your community on chiropractic adjustments, decompression, acupuncture or any other main service you represent. Groupon is great for promoting your secondary business offerings like massage, nutrition, weight loss, lipolaser or any other secondary niche service you provide. When you have these secondary services they should be there to augment your main business or create some synergy in your services. They also are a way to bring potential chiropractic patients into your practice by first experiencing you through these other services.

When you promote one of these secondary services it allows you to maintain your integrity and value on your Chiropractic services. Nobody really wants to go to a deep discounted dentist but I wouldn't mind a deep discount on professional teeth whitening. The key is to always keep and maintain the highest value for who you are and what you represent as a doctor. This will also keep in you good standing with your colleagues and state board.

Reasons to Promote

Ok, now we have a secondary service we want to promote using Groupon. There are only three good reasons to do this, so let's discuss each.

  1. Brand new service you are launching.
  2. A service you provide that is stagnant.
  3. A service that has seasonal valleys.

Let's take the first one. Groupon is a very good choice to launch a new service because you will be reaching a large audience very quickly. You will also get instant feedback as a gauge if this service is needed or wanted by your community. Without spending a penny upfront you can receive substantial funds from this groupon launch that can go into paying off new equipment or go into your traditional marketing fund for future advertising.

Make sure when you offer your deal that it is for a sample or partial service so that you are not giving groupon more than you have to. lso the consumer will have more resistance if you are asking for $1500 let's say for 10 LipoLaser treatments vs. $99 for 3 LipoLaser treatments.

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