Owners of lawn care & landscaping companies need to understand that there are numerous factors to consider when running a daily deal or group promotion.
The daily deal or “group buying” market or was heralded as one of the great new business ideas in 2010-2011, now even major market players such as Groupon and Living Social are falling below the expectations of those who have invested in them. This, however, does not mean that daily deals should be all but forgotten. When used right, they can be immensely profitable for your lawn care business.
‘Used Right’ being the keywords. That means such a deal should generate customer loyalty and prompt one-off clients to return to you, instead of turning toward the competition. This is no easy feat since no more than 20% of those who purchase daily deals return to the same business afterwards, says one poll by Utpal Dholakia at Rice University’s Jones Graduate School of Business.
No specific data has been provided for the landscaping industry, but it does share some of the traits of those fields which do generate customer loyalty, which include cleaning services, health care and and fitness services.
According to Predictable Profits CEO Charles Gaudet, a well-structured daily deal offer should extend beyond the price rebate that the coupon offers the client. That is to say, landing a new one-time customer is not enough. They must become recurring clients. They will do business with you on a one-off basis, unless you prove that your landscaping services are worth paying the regular price for.
Gaudet adds, “It’s important to realize that the daily deal customer purchased a coupon for your business based upon the price of the product, not because they have an intention to continue doing business with you. Once the daily deal customer redeems the coupon, it’s now the business owner’s job to convert them into a repeat purchaser and a lifetime buyer.”
How does one go about this process of building loyalty? By carefully looking into the ways your business stands to benefit from daily deals. Lawn Care and Landscaping Business owners need to thoroughly assess the campaign before, during, and after the promotion has run its course.
- Research the Daily Deal Website. Find out who their customers are. Are they your kind of customers? If your return customer base is different than the demographics that of the daily deals website, then consider taking your business to another website.
- Be Prepared For the Demand. Daily deals will be sending an increased number of customers your way. If your business can only accommodate the demands of five clients per day, then you need to prepare for this influx in due time. Otherwise, these all-new clients will be underwhelmed with your company’s service and response, as well as the amount of attention your staff can spare on the demands of each client.
- Evaluate yourReturn on Investment. Once the daily deal has run its course, make sure to have all the facts down to a tee. How many new clients has it brought into your company? How much business did these clients generate? Only if the investment was worth it in terms of sales figures should you be considering a repeat.
- Follow-Up Marketing. Marketing to the Groupon or Living Social customer after their first purchase is critical to turning them into a repeat buyer.