Online Coupons: the latest (but not necessarily the greatest) advertising investment.

Updated: Feb 12, 2019


Have you, or are you thinking of, offering a promotion thru an online deal site such as Groupon? If so, I'd like to share some marketing insights on participating in an advertising campaign of this caliber.


Here are some stats:

  • 20% of the deals listed on these sites are salon and spa related.

  • Internet "flash-mob" deals are usually not targeted to a specific market and therefore may not be reaching or attracting your ideal clients. (although I will admit this is changing and some of these companies can now target the ads)

  • Some spas are being left so overwhelmed by the response to their "deal" that their businesses are left jeopardized. (SpaFinder Trend Report)

  • 10% of your total monthly clients should be new clients.

  • Money spent on advertising and marketing to attract new clients is money wasted if you are not RETAINING these clients.

  • The industry benchmark (standard goal for best practice) for new client retention is 50%.

Do you have your systems in place to not only service these new clients, but to ensure that 50% of them return?

Do you have a strategy for customer relation management to continue engaging your clients in your business after the hordes rush in?

Are you servicing your "Groupon" clients with the same standards as your existing clients?

Are you tracking the success of your promotion? Are you tracking your client retention?


If you answered no to any of these questions, you may need to re-think your internal systems and make some infrastructure improvements before spending any more money on your marketing and advertising (particularily on campaigns like this).


Please remember that gift certificates/coupons of this nature are considered a liability. Your expenses will most probably rise with this influx of clients, but you will not be collecting any money on those services performed. You may love having the extra money on your income statement when the coupons are initially sold but you MUST leave it in the bank to pay your service providers and business expenses when these online shoppers start coming in and using them!


We'd love to assist you with your marketing and advertising strategies. Get your Salon Skipper coaching package here!

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