Living Social and Groupon deals

Replies to This Discussion

Permalink Reply by Las Vegas Massage In Summerlin on January 24, 2011 at 3:39pm

~

 

Hi Elaine!

 

Fortunately I'm busy enough that I've never looked into either service you mention.  You do mention a great point though...one of 'getting clients that will continually come to me,' or, 'clients that will continually come Back to me.'

 

I look at my business as a process or a system.  It's about figuring out what I'm doing, marketing it to a specific target market, attracting clients in the door and keep them re-scheduling with me.  If a part of this process isn't working right, it becomes unstable and breaks down.

 

In regards to the services you mention above, to my knowledge what they sound like to me are client attracting programs.  Offer this deal or that deal at a discount and it's sent out to everyone who's on the mailing list.  Not a bad idea, but, imho there's much more too this.

 

I think to participate (or at least to get a big response) one must offer a deep discount.  I'm not opposed to deep discounts to get people in the door, but one must make this a process as I mentioned above.  What do I mean by that?

 

If one is to offer a discount or do anything to draw in clients one must have a follow-up system to keep them coming back.  One method to do this is to ensure you get the clients e-mail and mailing address on the intake form.  This way you can contact them if they don't re-schedule with you.  Also, offer something to them to get them to re-schedule with you for at least a second massage.  I offer gift certificates with a discount for the client and a friend and family member to come back for their next massage.  The key is to keep them coming back!  If a new client doesn't re-schedule, I have their mailing address and I'll send them a letter introducing them to a new massage package I create around them.  How do I know what to create around the client?  I pay close attention to what they tell me prior to the massage, what they write on the in-take form and what their body tells me during the massage.  If they have upper back pain or neck problems, after the massage I put this in the clients history notes.  Then, in the letter I send them, I tell them of this new 'stiff neck, upper-back' massage package I put together just for them....the solution to their problems!  This not only catches their attention but they think I'm a mind reader!  This usually gets them back in the door.  ...and yes, I do offer this as a discount. 

 

I also offer client appreciation programs and client referral programs.  Do you see where I'm heading here?  First, we have to get them in the door, which the services you mention seems to do.  Yet, it's the follow-up, getting them to re-schedule that most therapists don't do very well at.  They just don't have a system or a process to keep the clients coming back.  An example would be:  Let's say you charge $70.00 for a one hour massage.  You use Groupon and offer a 50% discount.  This is fine and dandy, but it's then a tough sell to re-schedule them at full price for their second massage.  Going from $35.00 (the Groupon discount) to your full price of $70.00 is a big jump.  Instead, perhaps offer them a gift certificate for their second massage at twenty bucks off?  Now you get paid $50.00.  It's not your full price, but it's better than the fifty percent discount AND you get them to reschedule.   

 

We have to realize that attracting clients is at least twice as expensive and time consuming as keeping our exisiting clients.  If we keep our current clients then we don't need to keep looking for new clients.

 

When you mention above about people being booked out for 45 days, I see this as a huge positive IF we can get them all re-scheduled.  Now of course we're not going to keep deep discounting to them.  This is where the follow up comes in. We have to 'value-add' our services.  What can you offer to keep them coming back? 

 

There's a ton of other things one can offer as well.  I'm out of time for now, and this is getting pretty long, so I'll leave this for now  ;)  Hopefully this answered (at least) part of your questions  ;)

 

Kris

 

 

Permalink Reply by Las Vegas Massage In Summerlin on January 24, 2011 at 3:44pm

One final though....You wrote:  "But I just don't know if being busy is worth the risk of clients not committing to their health care".

 

Be careful with this.  A client committing to their health care, imho, is beyond our scope of work.  We can do what we do, but ultimately each of us, and each of your clients are responsible for their own health care.  We have to be very careful with 'recommending' this or that behavior to our clients.  It's outside our scope of work. 

 

With that said, if you only choose to work with those that DO take their own health care seriously, great!  Just be careful in your attempts to 'change' or 'convince' anyone that they need to do this or that for their own health and well being.

 

Kris

 

Permalink Reply by Bridget Turnbach on January 29, 2011 at 10:05am

I have not done such a deal as I feel it would be a loosing proposition.  Just a gut feeling though.  I think Kris's advice is fantastic as he is a marketing guru!

Permalink Reply by Karl Rohde on May 1, 2011 at 9:16pm

I have recently worked with several new massage therapists who have just started out, they have all used this approach to kick start their business (at my recommendation).

Using a discount site at that stage of your business is almost a no brainer (or if things are a little slow). Its great for a cash injection as well, for instance if you are moving to new premises or are wanting to take a few weeks off for holidays.

However, as with any business, the true value of these sorts of promotions is in the ability to capture people's details and follow up, get testimonials etc.

One client has had about 400 new contacts come through her studio in 9 months. Of those 20% have booked again, and at least 5% have referred other people. She has had many testimonials from it.

It can take years to get those numbers through other means when you are just starting out.

However, the fortune is in the follow-up. Getting the leads to follow-up is worth taking a hit on the session price, but as it is zero cost up front, 100% measurable and has an eager market, beats any other form of marketing I have seen in 15 years of working with small businesses.

Just my 2 cents worth.

Regards
Karl Rohde

Permalink Reply by Tonya Brooks-Taylor on June 8, 2011 at 12:11pm

I tried Groupon and won't be doing it again. It simply did not work for me and given the type of customers Groupon attracts I'm surprised it could be lucrative for any massage practice. My Groupon attracted a lot of one-timers who quite frankly are not interested in becoming regular clients to any Groupon merchant -- they are only "interested in the cheap deals" (straight from the horse's mouth so to speak). Had a number of one-timers come from out of state - furthest distance was Alaska! I did get great post-service reviews but that certainly doesn't help my bottom line. Thusfar only a handful of Grouponers have become regulars. I did have a couple of Groupon clients (who had traveled over 45 miles to their appointment) suggest that if I offered them services at the same ridiculous price (i.e. over 50% off) I could gain them as regulars. Not worth it!

 

Here's a blog/article I found online that I thought was interesting and informative: Why Groupon is bad for Business

Permalink Reply by Angela Lind on June 22, 2011 at 5:42pm

 

Read this great article about Groupon:

 

"Why Groupon is poised for collapse"

Permalink Reply by Nic Huette LMT on September 30, 2014 at 11:01am

Doing a daily deal has changed in the last few years from what I gather.  Now Groupon allows you to do caps on your deal monthly so you can offer just 10 or 20 per month for a few months.  Then you can decide whether to continue or not depending on your results or pause the campaign for a period of time.  This worked well for me as I was doing a lot of different things when I decided I wanted to get a lot busier.  So instead of going all out with Groupon or Living Social and offering to do a deal to sell like 400 or 500 massages and end up being booked with nothing but these vouchers for a year I figured better to just "test the waters" and sold 20 deals max per month for 3 months.  Did it around the holiday season.

I also boosted the value of the offering by including aromatherapy, foot scrub, and hot towels which I said "I value at $45" so I could sell my vouchers at a higher price point.  I got tips from most people and ended up averaging around $35 per 1 hour of massage even after Groupon took their 50% cut.  Now if you get good reviews Groupon or Living Social will probably offer you a higher cut if you ask for one.

Look around at other people in your area offering Groupon deals and see how many they are selling and what they offer.  If someone is trying all the Groupons in order to shop around for a therapist, you might be the one to impress them and gain a regular.  I had a few people from my Groupons buy packages and have stayed with me coming in more than once per month for over a year now.  So was that worth doing all those lower priced massages?  I think so. 

Be ready for a lot of people just buying the voucher to get their quarterly or yearly massage.  They won't come back.  But think about finding those few clients who do come back and refer all their coworkers to you.  Make sure you let people know you offer an introductory massage at the same rate of your Groupon so any friends of theirs buy directly from you and don't just go to buy the Groupon!  This way you get 100% of the discounted rate rather than 50%.

I say try it.  Limit it to just 10 per month just to see how it goes and if you are liking the results you can always increase the number of vouchers offered.

Permalink Reply by Alyson Schlobohm on March 1, 2016 at 6:54am

Hi Elaine,

I am a Massage Therapist who has run two Living Social promotions and I still say both decisions were the best I ever made. 

Will you get a lot of people who are only going to come in once? Absolutely. 

Will you get a lot of people who are trying to find the right massage therapist but don't want to spend a fortune doing so? Absolutely. 

With the right approach - NOT treating your purchasers like they're "discount clients", honoring the full amount of time you offer, being professional, courteous and giving a really good massage, following up, etc., etc., etc., you can have tremendous success with these features.

Keep in mind - it's NOT for everyone. (What is???) 

In my opinion, the daily deal features are basically guaranteed advertising so it makes sense to me. 

There is a LOT to think about before committing, though. In fact, I've written a pretty lengthy guide on how to do it correctly which I've attached to this response.

I do know that SOME of the information attached is dated - I spoke with a representative from Living Social recently and the splits are actually a little better (for US) these days, so make sure to check with your local rep for their current prices.

And finally, don't be afraid to reiterate to your purchasers that this is a TRUE bargain and encourage tips. I don't normally advocate for this but when you're offering that much of a discount I believe you have every right!

Hope this helps! 

Alyson

Attachments:

• minds-on-massage-daily-deal-full-guide.pdf, 1.4 MB
• minds-on-massage-daily-deal-parameters-calculator.xls, 954 KB

Permalink Reply by Alyson Schlobohm on March 1, 2016 at 7:08am

Oops, forgot the instructions for the Excel sheet!

Alyson Schlobohm said:

Hi Elaine,

I am a Massage Therapist who has run two Living Social promotions and I still say both decisions were the best I ever made. 

Will you get a lot of people who are only going to come in once? Absolutely. 

Will you get a lot of people who are trying to find the right massage therapist but don't want to spend a fortune doing so? Absolutely. 

With the right approach - NOT treating your purchasers like they're "discount clients", honoring the full amount of time you offer, being professional, courteous and giving a really good massage, following up, etc., etc., etc., you can have tremendous success with these features.

Keep in mind - it's NOT for everyone. (What is???) 

In my opinion, the daily deal features are basically guaranteed advertising so it makes sense to me. 

There is a LOT to think about before committing, though. In fact, I've written a pretty lengthy guide on how to do it correctly which I've attached to this response.

I do know that SOME of the information attached is dated - I spoke with a representative from Living Social recently and the splits are actually a little better (for US) these days, so make sure to check with your local rep for their current prices.

And finally, don't be afraid to reiterate to your purchasers that this is a TRUE bargain and encourage tips. I don't normally advocate for this but when you're offering that much of a discount I believe you have every right!

Hope this helps! 

Alyson

Attachments:

• minds-on-massage-daily-deal-calculation-spreadsheet-instructions.pdf, 1.3 MB