Don’t Groupon Your Brand AwayBrand360 Logo-150brand360-logo-bluewhite-150Don’t Groupon Your Brand Away
  • SME GRANT
  • WHAT WE DO
    • Brand Design
    • Brand Strategy
    • Marketing
  • WE ARE BRAND360
  • OUR CLIENTS
  • RESOURCES
  • WORKSHOPS
    • Personal Branding Workshop
    • Brand Storytelling Workshop
    • Brand Strategy Workshop
    • Digital Marketing Workshop
  • CONTACT US
✕

Don’t Groupon Your Brand Away

groupon

A friend recently bought a groupsmore deal for 6 of us, and promised a fun girly day getting our nails done. I’m all for the girly day out, but I’m not too sure about the deal. In fact, I’m not so sure businesses should be participating in Groupon or our local Groupsmore or any of the copycat sites like MyDeal and We Buy, either.

 

Here’s why:

1. I’m only attracted to the cheap package.

The deal was for RM18 for RM98 worth of manicure and pedicure. Sounds like a really good deal, right? That’s over 80% off! However, would I pay the full price for something I paid only 20% the next time I want to get my nails done? Even before stepping into the salon, I already have the impression that it is a discount store. Is that the kind of brand image the salon wants?

2. I already have a package with another salon.

I get my nails done periodically. And I already have a nails package from a salon I’ve tried and liked. So, assuming I am satisfied with the RM18 salon, I am unlikely to return until I’ve finished my existing package, by which time I may be attracted to another salon that offers me RM17 for a mani&pedi set. I’m just saying.

3. I’m not expecting great service.

The deals site has already informed me that 281 people bought the mani&pedi set. Can a small nail salon handle 281 new customers, all within 3 months? I’m expecting grumpy, tired nail therapists, who suddenly have to polish so many extra sets of hands and feet for the same salary. Plus, I’m half expecting the experience to be cut short. Maybe my therapist won’t give my nails a buff, or skip the cuticle oil, because come on, full service at 80% off? Something’s gotta give.

Any existing customers would be frustrated that their regular therapist is tired and cranky from all the extra work, and would probably look elsewhere for better service too. So basically, the salon would be dirving away its regular, FULL PRICE-paying customers for new, one-off discount customers. Everyone, say it with me – cannibalization.

The web’s full of reviews of how customers tried out deals like the one I bought, only to walk away with a bitter experience and a vow never to go back. Check out this review by the popular blog My Women Stuff.

4. I don’t even remember the salon’s name.

It’s not that I’m purposely omitting the name of the salon whose services I had bought; it’s that I don’t remember it! I only remember it’s a MyDeal coupon and the location of the salon. So all these deals are adding to the deal site’s branding, not the small businesses.

5. Groupon makes more than you do.

Groupon takes 50% of the deal bought, while small businesses are stuck with credit card charges as well as the cost of fulfilling the service. Pretty good deal for Groupon, I’d say. Don’t forget businesses would have to give between 50% to 90% discount to get lots of people to buy their service. So I hope the nail salon I’m going to visit has a plan to entice me to come back and pay full price next time.

I’ll keep you posted.

Related posts

September 13, 2022

From East Malaysia, by East Malaysians: Tribute to Sabah, Sarawak Brands


Read more
August 26, 2022

Celebrating Merdeka Day with Hong Min, Ummi Khazriena and 12 other Malaysian Brands


Read more
August 23, 2022

Brand Recognition vs Brand Awareness : What’s The Difference?


Read more
Share
Subscribe to our newsletter for social resources
Name
Email address

Step By Step Guides

  • 0
    Best Examples of Visual Hammer and Verbal Nail in Action
    March 22, 2023
  • 0
    WhatsApp, Instagram Job Scams: This is how they trap you
    March 6, 2023
  • 0
    Influencers vs Content Creators: Who To Hire?
    November 14, 2022
  • 0
    A Look Into TikTok Advertisement and Why It Works
    October 31, 2022
  • 0
    2022 TikTok Slangs You Shouldn’t Miss!
    October 17, 2022
Don’t Groupon Your Brand Away

We are in the business of helping build real and enduring value for brands through insight, strategy and marketing. We out-think your competition, not out-spend them.
Tel: +6 (0) 3 6272 3299
Email: hello[@]brand360.com.my
 

Privacy Policy | Security Policy | Disclaimer

Recent Posts

  • Best Examples of Visual Hammer and Verbal Nail in Action
  • WhatsApp, Instagram Job Scams: This is how they trap you
  • Brand Positioning Strategy: Better, Cheaper, Different, or Forgotten?
  • 2023 Digital Marketing Trends: 5 Tips To Conquer The Year
  • Zus vs Gigi: The Great Coffee War of the 21st Century
✕
© 2022 Brand 360 Degree Sdn Bhd 200701034906 (792935U). All Rights Reserved.