HOW TO!
Use Group Voucher Websites as an Effective Marketing StrategyAre you familiar with “deal-of-the-day” websites, offering great discounts to customers based on a minimum number of sign-ups for each deal? Maybe you’ve even bought vouchers yourself?
This is one of the fastest growing online shopping markets, and is estimated to be worth millions of dollars in revenue each month. Many PADI Dive Centres have already advertised on websites such as “Groupon” (group coupon), “Living Social”, and “Spreets” (spread the word on the streets), and following their experiences, we would like you to consider some key points, before you dive in.
Although any advertising that gets customers through your door is great, it’s important to recognise that the web-savvy consumer these sites attract can be your ally or your enemy. Give them a really positive experience and they’ll advertise you for free to their friends via social media like “Twitter” and “Facebook” etc. Give them a bad experience or poor customer service and they’ll tell ten times as many people!
It’s crucial for your business to get this right first time!
What is the Real Marketing Value of this for a Dive Centre?
The obvious and immediate value is the increased footfall of customers into your store – but this alone does not generate much income. The percentage discount you have to give and the substantial cut taken by the website really only makes this a viable option for selling DSDs, and you are unlikely to make profit from those DSD experiences alone after costs. Therefore the long term value to your centre comes from converting the DSDs to Open Water divers, regular customers and beyond.
To have a fighting chance of converting them, you need to have the scope for delivering really effective customer service at each point of contact – that is when they first phone you, when they come in to the centre to dive with you, and following up with them after they’ve completed the DSD. You need to have your strategy and a schedule for this in place IN ADVANCE – waiting until the phone starts ringing is too late!
What is it going to cost my business?
It may seem like a golden sales opportunity, but before you get too carried away with the hundreds of people you could sign up, make sure you can realistically handle them and give them a great experience. There are costs in time, effort and resources that must be planned for.
Work backwards - start with what you can deliver
and let that dictate what you offer!
Be aware that you can dictate the maximum number of vouchers available, as well as the minimum. Having a cap on the number offered can also add perceived value to your deal and future deals if you do it again.
Responding
After the deal goes live, the phone will ring constantly for a couple of days, with people eager to book in with you, you may also have a stampede come through the door! Having a designated member of staff to cover the phone during this period is essential – it allows you to give consistent customer service to the callers, while avoiding any confusion or mistakes over what is booked in the diary. It will also mean minimum disruption is caused to your staff, existing customers and the courses that are running at the time.
Scheduling
When scheduling the DSD Experiences, consider the costs associated with pool use and staffing. If you don’t have a pool on site, the most cost-effective way is to combine the DSD time slots with your regular pool times, or if booking the pool especially, establish a minimum number of people per session to make it viable. Work out the pool time/staff hours/equipment that can be committed and the staff to participant ratio you want to offer. Allow extra time for your staff to register all the DSDs afterwards.
Do not be afraid to limit the times available to the public, so that it works within your existing schedule rather than swamping it. Make sure that accommodating large numbers of DSDs does not damage your core business or alienate your regulars.
Commitment
Depending on the site you advertise with, there will be differences on your contractual obligations and how you redeem the money for vouchers sold:
*Be aware of exclusivity clauses, and ensure you are prepared to honour any restrictions on advertising your centre through other websites.
*Work out how many vouchers/people you can take based on the immediate cost you can afford to absorb. Some sites pass on the money for the vouchers sold after the deal has closed, making you responsible for handling any refunds, cancellations etc. Others withhold the money until after the vouchers are used, and there will be a time delay between you running the DSD and reclaiming/receiving the money for it.
When costing your campaign, factor in the immediate expenses of DSD booklets, staffing, pool costs and gear without relying on the voucher money to cover it in the short term!
Sales Opportunity
If you plan to make additional income from merchandise sales, make sure what you offer is optional. Adding hidden costs to the existing deal will alienate this customer, and may cause them to demand a refund. If a high percentage of voucher customers demand a refund, you can encounter problems with the website, in addition to the negative publicity it will cause for your business locally and in the social media.
Consider sales opportunities in the small detail, for example offering customers the chance to buy their own mouthpieces, (for use with your rental equipment,) is one good idea that has been used already.
After Care & Maximising the Value to your Business
If you wait until all the vouchers have been redeemed before you start contacting the first DSD customers, you will have missed the boat!
Hopefully a percentage will sign up for more on the day, however it’s difficult to spend quality time with everyone when you’re dealing with groups. Following up with each person individually within a couple of days is the best way to capitalise on their positivity and the great experience they’ve had with you.
You already have their interest – now make use of it!
The potential value to your business of each new diver makes it worth scheduling some extra time for your staff to call them afterwards, and spend a few minutes talking about their experience, the courses you offer, social events at your centre etc.
To find out more about the ideal route to a successful follow up for DSDs, please contact your Regional Manager via mox.moberg@padi.se
