Q: Since nauuso ang group buying sites ngayon, kasi more than 50%off ang binibigay nila sa customers. Paano kumikita ang Company ng mga naglalagay sa Group Buying sites? More Customers yet Low Profit? May mga nakita ako umaabot sa 90% off pa yung vouchers. Not sure kung pano pa sila kikita nun.A: Great question! Most marketers (hint hint) know the answer to this. Shortcut answer: Back end sales & Free Word of Mouth Social PromotionLong answer:I happen to know how they work and who earns short term and long term. Want to know? Attend the FREE webinar this Sunday 4pm-530pm by registering at http://jhilario.com/masterygroup
But to answer your EXACT question, here it is:
Once you get a customer to "promise" or pledge to buy the 90% off product, that person is desperate to tell his friends via FB or Twitter (Why is it that there's a FB or twitter button in the group buying (groupon, ensogo) site? That's not for decoration).
They'll be desperate to do this because there must be say, 35 orders before the 90% is in effect. Plus behind the scenes you don't know it but after 35 people say they're in -- they have like 24hours to PAY THE MONEY or the deal (90% off) is not going to push through.
Did you detect what happened above?
The company's products are promoted like crazy by people. Sometimes getting 1000 likes on their FB page because of this. And the word of mouth too, you can't buy that kind of rumor: wow! 90% off at MELOS Steak House! Tell everyone at lunch. Forward this to your friends.
Hehe.
That's one. Promotion and it's free.
Marketing Masters know that once they get the emails or the likes of the people who are even JUST interested in their product - they can now start with an email series, facebook wall message series to attract these people to avail of their next promo (not at 90%). Why not? The customer, in the past indicated he liked the product - so why not invite again and again until they "UNLIKE" the company page or unsubscribe from the email list.
Most companies are happy with the first benefit (free promotion) - but the best ones will collect EMAILS and LIKES because of it.
And I haven't even started discussing Birthday Promos which facebook makes it super duper no brainer to do. To get a good idea how this works, to know more about the insides of group buying sites, attend the FREE webinar this Sunday 4pm-530pm by registering at http://jhilario.com/masterygroup
