A Cautionary Tale - Groupon Lesons

I came across this article Groupon: Worst Marketing For Your Local Business – Case Study from The Retail Doctor  (posted to Twitter by Laura Bergells, @maniative) and feel that I have to share it with my clients, friends, blog readers....anyone who may be considering an online coupon program through Groupon or a similiar site.

Here are my thoughts on the article:
- I am pleased that the truth behind online coupon deals is coming to light. That said, I am not against the parent sites earning profit on these sale. Without an end profit, there would be no site.
- If you look at the cost of running an online coupon promotion as a large scale marketing effort you will be better prepared to NOT make a huge, immediate profit. (Scary, I know!)
- Many local retailers are not in a position to come out significantly ahead on these "deals".
- The Retail Doctor offers great suggestions at the end of the article, have a 50% off sale etc., publicize that through facebook, twitter or other cost effective outlets to increase sales.
- You don't have to spend $1 million to make a few bucks, but can you afford unlimited half off coupons on your current profit margin?

By considering a few things BEFORE running a similiar promotion you will not only be better prepared to offer outstanding customer service, but you will also know the financial risks and implications up front, before it is too late.

Have you run a Groupon (or similiar promotion), what results have you had?

Incidentally, I have not purchased through Groupon, but I have used a similiar site. I had such a poor experience at the local retailer that not only will I not be back, but even at half off I thought their product was overpriced!