2011 has been a huge year for daily deals. It was a year that not only saw the growth of Groupon and LivingSocial, but the birth of a few newcomers. The popularity and potential of the deals market has caught the attention of several well known companies, including Google, one of the latest to enter the game with the recent introduction of Offers. Pardon the pun, but this new Groupon competitor has a lot to offer both the deal seeking consumer and the crafty marketer looking for another way to get a leg up on the competition.
Access Your Situation
The first thing marketers must do in order to take advantage of Google Offers is figure out if it is the right option. Maybe you operate a store that keeps the hottest shoes in stock. Perhaps you are a real estate agent with a track record of helping buyers and sellers close deals. Even if you are a local business, it is important to know that Google Offers may not be right for every business. Groupon in particular, is ideal for businesses such as restaurants, spas, and entertainment venues, not necessarily software vendors selling the exact same products someone can easily get elsewhere. Offers can help you present a great deal, but that doesn’t mean the deal will move.
Prepare for the Rush
Google Offers is no where near Groupon in terms of number of users, but that doesn’t mean it can’t send a bunch of traffic to your door. In the case that it does, you need to be prepared to handle the rush. You may only be anticipating dozens of guests, but what if Google Offers gets you a lot of exposure and sends hundreds of visitors to your establishment? Because every business has its limits, it may be wise to put a cap on your deal before going live to ensure that the volume is one you can accommodate. This way, you can make out nicely without overextending yourself.
Get the Most from Your Offers?
Although Google has not publicly revealed details regarding how much money it takes from each sale, you have to assume that it gets something. With Groupon, you have to share around 50% per transaction. This is a very important factor that deserves careful consideration because you are already giving out huge discounts, and having to share money with Google could really eat into your profits. If you want to maximize the potential of your offers, be sure to put together deals you can afford to give away, and keep something else in store for your visitors. While you may not make much on the 50% off meal, you may be able to profit nicely on drinks and other items you have on the menu.
For now, Google Offers is a beta offering only available in select cities. However, it’s expanding fast, so if you want to be one of the early adopters, sign up now so you can be ready when it rolls out to consumers in your neighborhood.