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Is a Groupon Promotion the Right Move for Your Business?

September 19, 2019

Betty
PBA

Are you a salon or spa owner looking for creative new ways to market your beauty business and grow your client base and revenue? The Professional Beauty Association is excited to announce a new Member Benefit in partnership with Groupon, a service that is redefining how small businesses attract and retain customers by providing them with customizable and scalable marketing tools and services to profitably grow their businesses.1 Groupon is a great marketing option for salon and spa businesses because the platform is designed to help local and service-oriented business attract new customers, especially during off-peak seasons.2 As the only association to represent the ENTIRE industry, PBA is always on the lookout for new ways to help you grow your business!

Hosting a new promotion through Groupon can help boost your beauty business in a few ways:

  • Opportunity to market your business on a new platform
  • Descriptions of services, photos
  • Ratings and reviews
  • Increased website and social media traffic

Here’s what’s included in this brand-new PBA Member benefit:

  • Typical Groupon revenue share is 50/50, but with PBA Membership, you’ll receive
    • 59/41 revenue through hair campaigns (with additional fees)
    • 65/35 revenue share for hair/nail packages, spa treatments, and other services (with additional fees)

Typical Groupon deals net customers 46%, but with PBA Membership you can net 55% after administrative and marketing fees! Here are a few best practices if you’re interested to launch a new Groupon promotion for your salon or spa business!

  • It’s not uncommon for Groupon purchasers to only come in for one service or appointment based on the voucher they purchase. To help retain these new customers, encourage your staff to pre-book their client’s next appointment on the spot, or offset the discounted service cost with increased product sales.3
  • Be aware of how deep to discount your services. Too much of a discount might lower the perceived value of your services, while not enough of a discount won’t provide incentive to buy.
  • Prepare for a rush! It’s likely that a Groupon promo will bring in a noticeable volume of new clients to your business and your website. Prepare your books for appropriate staffing and timing of appointments to accommodate the client wave, and make sure you’ve got tech support on speed dial to support online traffic.
  • Do the math. Hosting a promotion can either cost you, the business owner, money based on the average customer spend… or it can make you money, also based on the average customer spend. The New York Times illustrates this phenomena perfectly.

If you’re ready to try a new way of marketing your beauty business, become a PBA Member to access this amazing deal! Visit probeauty.org/join for more information.

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