Many small and medium-sized businesses have conducted promotional marketing campaigns on sites like Groupon and Living Social and in direct mail coupon value packs. You’d think these coupon deals would be bringing in new and repeat customers like crazy. But, are they? And, if not, why not?
First, let’s get some important data out of the way.
- Groupon’s overall merchant satisfaction was very strong in March 2012. Source: ForeSee Groupon Satisfaction Study - commissioned by Groupon
- Groupon brings customers in the door and 74% of merchants say that is the main reason they work with the company. Same study
- 80% of marketers have no plans to use daily deal sites, such as Groupon or LivingSocial in the near future. 2013 Social Media Marketing Industry Report
- About 40% of restaurateurs indicated that deal purchasers were new customers, and 35% of the deal customers returned to the restaurant without a further incentive. The number of operators who said they made money on the deal was about the same as those who lost money. Cornell Center for Hospitality Research Reports on Restaurant Daily Deals and Sustainability.
As you can see, results are mixed. Although this is unscientific, I’m going to take an educated guess as to why some advertisers have experienced lackluster results. Perhaps, it was a result of these marketing boo boos: Continue reading
A recent study by BIA/Kelsey’s Local Commerce Monitor says that small-medium businesses (SMBs) perceived their Twitter ROI as “excellent” (10-19 times spend; 18.8%) or “extraordinary” (20+ times spend; 12.3%), up from 25% of advertisers in last year’s survey and 17.1% in 2011. But, there’s something missing here.
It’s important to know whether these results represent B2C (business to consumer), B2B (business to business) companies, or a mix of both? Personally, the results would have more value if they showed B2B and B2C separately. Other studies I’ve read seem to indicate that B2C companies are benefiting more from social media marketing than B2B.
The study also shows that SMB usage of Twitter for advertising and promotion has been steadily increasing over the past few years. In fact, 24.3% of SMBs used Twitter for advertising and promotion this year, compared with 22% in 2012 and 16.1% in 2011.