Is Groupon For You? -

Is Groupon For You?

We all know about the rage that is going on with the Groupon-type services, and with many businesses, I see where it can be a really good fit. Examples would be in the fast food industry, and with companies that sell commodities like soap or shoes. Yet, when it comes to the auto repair business, with just two exceptions, I feel that this type of marketing is a bad fit. Here's why ...

By Bob Cooper

We all know about the rage that is going on with the Groupon-type services, and with many businesses, I see where it can be a really good fit. Examples would be in the fast food industry, and with companies that sell commodities like soap or shoes. Yet, when it comes to the auto repair business, with just two exceptions, I feel that this type of marketing is a bad fit. Here’s why …

The most successful shop owners know that they have to specifically target their customers, because they are aware of the price that’s paid when they have the wrong customers on the other side of their service counters. I’m talking about the customers who don’t take good care of their automobiles, they don’t have the money or creditworthiness to pay for your recommended services, or they are the do-it-yourselfers. This is why the successful operators will identify who their targeted customers are (in both demographics and psychographics), and direct their ad campaigns towards those customers. This allows them to generate higher ARO’s, happier customers, more repeat business and higher profits.

On the other hand, with a service like Groupon, you can bring in a lot of traffic, but odds are that the overwhelming majority of those leads will be the wrong kind of customers. Some shop owners attempt to filter their Groupon customers by setting a higher price on their oil service specials, which is a good move, but with no other filters or qualifiers in place, it’s still likely that the majority of these customers will only have one thing in common: They’re looking for the best price.

With that said, I do see two exceptions. I can see Groupon being effective for the shop owner who just opened up a new shop and is trying to generate traffic and community buzz, or the owner who has taken over a failing shop, and is trying to accomplish the same goals. Lastly, I know that there are exceptions to every rule, and for some of you, programs like Groupon may work. But the kind of customer you are looking for, with rare exception, won’t find their new dentist, family doctor, or lawyer through Groupon-type promotions, because they’re looking for the right people… not the lowest price. I think it’s safe to say that your targeted customers won’t find a customer-centered business like yours through discounts alone either.  It’s time to identify your targeted customers, and then direct all your campaigns towards the right people.

For additional help filling up your service bays with the right kind of customers, learn more about Elite’s auto repair marketing solutions.

You May Also Like

TechShop, ShopOwner Offer $50 For Good Guesses

Guess The Tool For A Chance At Cold Hard Cash!

Experts say that, if you can identify the tool described by the image below, you have an exceptionally creative personality. For two of you, the same experts say you'll have a slightly larger bank account as well.

TechShop and ShopOwner have teamed up to present the monthly "Guess The Tool" contest. Presented by Snap Finance, the contest randomly selects two winners from all correct guesses each month. Here is the current puzzle:

When Is A Marketing Firm Right For Your Shop?

These steps can help you hire the right marketing team to build business.

How Winter Tires Exemplify the Cost of Confidence

Tire professionals focus on why the product they’re selling is worth the investment.

Brian Pierce: ‘My People are My Biggest Motivator’

Manager of 16 Black’s Tire stores, Brian Pierce has been commended on his dedication to his customers.

What Shop Owners Need to Know About SEO Drawing Customers from the Web

SEO is complex. Shop owners may think it’s just about throwing some keywords on a page a bunch of times. However, it’s more than just putting the right keywords on your website. Showing how complex it actually is, simply saying that’s only a piece of SEO and not the whole story. Some shop owners think

Other Posts

Upgrading Your Air System Is Easier Than You Think

Improving your shop airflow benefits your shop, your techs and your bottom line

Understanding the Customer Lifecycle

Connect with customers to create repeat business and build your brand.

The Advantages of Selling Specialized Automotive Services

Specialization can set your business apart and meet specific customer needs.

Working Smarter Instead of Harder

Imperfect people can perform at or near perfection when they have perfect processes.

Work-Smarter