Groupon experiments with a new car promotion at LaFontaine Cadillac-Buick-GMC
Groupon created an interesting experiment by combining its coupon service with an auto purchase. Working with Lafontaine Cadillac-Buick-GMC, Groupon offered members the chance to purchase a $500 discount towards a Cadillac, GMC, or Buick vehicle between July and December 31st. You can read about the campaign at Autoblog. The jury is out if the deal has been a successful experiment.
The Autoblog post and associated comments raised some great observations, but I have some other ideas that small businesses could learn and apply:
- Consider price sensitivity of a coupon - A coupon should be easy with a price discount clear as a bell. The price sensitivity of a $500 is a token discount, made worse with a $200 buy-in dependent on 100 other people buying a vehicle within 5 months. While the odds favor gathering 100 people by then, it’s still risky given the economy, which leads to....
- Consider the product and brand. The vehicles in the offer are premium vehicles in GM’s brand portfolio. A $301 discount may be helpful to GMC, maybe Buick, but not Cadillac (The Autoblog post comments raise a good point about how much value the discount really brings)
- Consider customer alternatives available - is the deal appealing in the given economy? The dealer is located in Southeast Michigan, a region in which car dealers selling brands from the Big Three typically have a captive audience - Big 3 employees enjoy a company discount on the price of a new vehicle purchase. This also means the dealer competition for after-sales service is higher, since an employee can do business at any dealership. A Groupon program would indeed create a captive audience of 100 customers in a highly competitive market, but given Michigan’s economic condition and the specific nature of the auto employees in southeast Michigan, a coupon could have limited impact.
- If you are planning a coupon, consider using an URL builder in a link of a coupon offer -- make sure your business is able to track the reach of a coupon for your intended audience.
[...] Using digital coupons effectively. Of course, coupon promotion has forever been an effective marketing strategy for small businesses, and today, with the advances of digital technology, that strategy can be taken to a whole new level. Groupon is undoubtedly the best known brand name in this new market. What can it teach us? Zimana Blog [...]
[...] Using digital coupons effectively. Of course, coupon promotion has forever been an effective marketing strategy for small businesses, and today, with the advances of digital technology, that strategy can be taken to a whole new level. Groupon is undoubtedly the best known brand name in this new market. What can it teach us? Zimana Blog [...]
[...] Using digital coupons effectively. Of course, coupon promotion has forever been an effective marketing strategy for small businesses, and today, with the advances of digital technology, that strategy can be taken to a whole new level. Groupon is undoubtedly the best known brand name in this new market. What can it teach us? Zimana Blog [...]
[...] Using digital coupons effectively. Of course, coupon promotion has forever been an effective marketing strategy for small businesses, and today, with the advances of digital technology, that strategy can be taken to a whole new level. Groupon is undoubtedly the best known brand name in this new market. What can it teach us? Zimana Blog [...]
[...] Using digital coupons effectively. Of course, coupon promotion has forever been an effective marketing strategy for small businesses, and today, with the advances of digital technology, that strategy can be taken to a whole new level. Groupon is undoubtedly the best known brand name in this new market. What can it teach us? Zimana Blog [...]
[...] Using digital coupons effectively. Of course, coupon promotion has forever been an effective marketing strategy for small businesses, and today, with the advances of digital technology, that strategy can be taken to a whole new level. Groupon is undoubtedly the best known brand name in this new market. What can it teach us? Zimana Blog [...]
[...] Using digital coupons effectively. Of course, coupon promotion has forever been an effective marketing strategy for small businesses, and today, with the advances of digital technology, that strategy can be taken to a whole new level. Groupon is undoubtedly the best known brand name in this new market. What can it teach us? Zimana Blog [...]
[...] Using digital coupons effectively. Of course, coupon promotion has forever been an effective marketing strategy for small businesses, and today, with the advances of digital technology, that strategy can be taken to a whole new level. Groupon is undoubtedly the best known brand name in this new market. What can it teach us? Zimana Blog [...]