The Gathering: Social Marketing, Old School

The brave new world of Web 2.0 offers a wide array of platforms that allow businesses to connect virtually with the people who want what they’ve got. But long before the advent of the Social Web – before anyone had ever heard of Twitter, Meetup, Craigslist or Facebook – social marketing flourished. From Tupperware parties to trade shows, whether in living rooms or convention halls across America, people came together in gatherings to connect with products, sellers and other customers like themselves all at once. And while today’s culture of hyper-connectivity has dealt much of traditional marketing a fatal blow, the gathering has stood the test of time. In fact, social technology has given new life to the gathering. No longer confined to fixed time slots or venues, the content and conversations of events now live on in perpetuity through social media, event-specific websites and online video. It’s important to make sure that gatherings have a place in your marketing arsenal.This relationship works in the other direction as well. As communities form around common interests on the Web, real-world gatherings are a natural extension of members’ online interactions. Like a handwritten note in the age of e-mail, the face-to-face connection has become a rarefied, premium experience in a time when virtual connectivity is always only a finger-swipe away. For these reasons, it’s important to make sure that gatherings have a place in your marketing arsenal and that you’re investing time in engaging with your tribe of followers offline as well as online.

"Ideas worth spreading"

A recent gathering I attended began like a bad joke: an artist, an engineer and a socialite walk into an auditorium. This time, however, there was no punch line. Instead, I was participating in a TED event, and the room was electric with the pre-show buzz of right and left brains, liberals and conservatives, vegans and slow-food carnivores wearing “I ♥ Meat” t-shirts. For decades the famed TEDTalks have brought together artists, angel investors, designers, doctorates, engineers, entrepreneurs, communicators and community leaders, all in pursuit of one common passion: “ideas worth spreading.” With its famously short talks (25 minutes or less), TED is a petri dish for innovation, and most followers would sever their right arm to attend the invitation-only conference in Long Beach, California. Historically, the group met in druid-like seclusion. But with the ascension of new leadership came a new vision: world-changing ideas should actually be shared with the world. The arrival of online video gave TED a second, virtual life, and in the early 2000s, TED.com began offering free access to full-length videos of its proceedings. For years, TEDophiles like myself have gobbled up this content online while dreaming of experiencing it in person. Fortunately for us, the masterminds behind TED realized that ordinary people everywhere have ideas that could change the world, or at least their local communities. So in 2009, TEDx Events were born, with TED lending its name, brand collateral and mission to independently planned and executed local gatherings. In December 2010 alone, 165 TEDx Events were held in 54 countries. I myself became an official TEDster on September 24 at the inaugural TEDxCharlotte, right in my hometown. A dream came true as I sat with hippies and hipsters for one glorious day of ideas worth spreading. As TEDizens like me have discovered, it is the gathering itself that is the holy grail, not just the content and information. The conversations and connections that can be sparked when people meet and share experiences in the real world are deeper and longer-lasting than those that are confined to tweets, Facebook wall posts or even forum message boards.

Gathering your tribe

TED is a shining example of the value of creating opportunities for people to meet and interact with others who share their interests. Identify the commonalities that unite your tribe.However, you don’t need their massive, worldwide following to harness the power of the gathering to grow your business. You just need to identify the commonalities that unite your tribe and orchestrate an event that taps into their shared passions and provides an outlet for engagement. Remember that those who would make the effort to spend time and energy with you are your champions. They are people who believe in – or at least are interested in – your product, service or company enough to bother. You don’t have to dazzle them. But you do have to show up, make authentic connections and give them something of value for their effort. The end result? They will love and trust you more. In order to ensure the success of your gathering, here are some key points to keep in mind:

Bigger isn’t necessarily better

Often, the slicker and more carefully controlled the interaction, the less special the event can feel. Instead, just keep it simple. Invite a handful of your best customers or, if the invitation is open to all, limit registration. This will foster an atmosphere of intimacy and privilege for those in attendance. Most importantly, don’t use the event as a ruse to assemble your followers for a sales pitch. Be genuine and focus on delivering something of real value.

Show what you know

If you’re a service provider, your customers routinely pay for your knowledge and experience. Play to your strengths by hosting an educational gathering related to your area of expertise. For example, a lawyer could offer a free estate planning workshop to recent retirees or present a seminar for small business owners about the implications of recent health care legislation. The payoff for this type of effort is a group of prospective clients who believe in your credibility as a knowledgeable resource and trust in you more than your competitors.

Break out of your box

Perhaps people associate your business with a particular line of services or products even though your catalog is actually much more diverse. A gathering is a great opportunity to shed some light on your less well-known areas of expertise. For instance, a pest control specialist might know as much about protecting garden vegetables from aphids as floor joists from termites. A lecture to the local garden club could open a new niche market hidden from competitors’ view. Likewise, an interior decorator could offer working moms a workshop about organizing with style, thereby becoming the savior of the super-busy.

The power of privilege

Treat your best customers (the ones you or your staff know by name) to a special appreciation event. Give away products and thank them sincerely for being so faithful to you. They will love your company all the more and become even more vocal evangelists for your brand.

Party like it’s $19.99

If your brand or your products already have a fan base, give those fans an excuse to get together and have a good time – all under the banner of your brand. You’re throwing the party. They’re your fans. The conversation will inevitably lead back to you. You don’t have to force it. Think gallery crawls, wine tastings or product launch parties.

For the love of rewards

Oh to be in the audience the day Oprah gives everyone a new car. Most days, though, you’re at least going home with a free book. When you host an event, reward the effort people make to attend by giving away products to those who show up. Better yet, give more products to people who bring others with them. In doing so, you’re not only giving them a no-risk way to experience your product or service, but you’re incentivizing them to spread the word to others as well.

Use the Web to promote your gathering

If you want a large event, invite all your Twitter followers. If a smaller gathering of your best customers is what you’re after, send direct messages to only the most active or influential among them. You can even turn your event into a contest by challenging your Facebook fans to share why they love your products in order to win a place on the guest list. You’ll not only have an instant list of eager attendees, you’ll also reap some great testimonials for later use.

Transcend time and space

When your event is over, share pictures or video online to demonstrate the good time had by all and the value those who attended received. For example, if your event was instructional in nature, offer a recap of the tips that were covered or access to video of a presentation delivered at the event. Get people talking about your event and keep them talking. The important thing is to get people talking about your event and keep them talking – and sharing, and linking to, and blogging, and status updating and tweeting – about what wonderful people you and your staff are and how much value they find in your product, service or expertise.

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Dos and Don'ts for a Successful Groupon Promotion

Do: Be aware that it’s not for everyone, and it may not be right for you.

With a subscriber base that has surpassed 85 million and shows no signs of slowing, the allure of Groupon is hard to resist. The basic premise seems fail-proof: create a discount offer that’s broadcast to thousands of potential new customers, sit back and watch the dollars roll in.

However, every business model is unique, and there are many variables that determine how well your company can respond to a sudden, short-term influx of traffic or a temporary drop in profit margin.

Running a promotion is particularly risky for companies in Groupon’s bread-and-butter categories like salons, spas and restaurants, where the frequency of offers dilutes their perceived value.

If your business falls into one of these categories, you must carefully weigh the chances of being able to convert first-timers into regular customers versus the likelihood that they’ll simply wait for the next Groupon to come along. If the odds don’t stack up in your favor, you may find that the sacrifices you must make to execute the promotion won’t ultimately deliver a long-term pay-off in the strength and size of your customer pool.

Don’t: Expect Groupon to boost your bottom line.

At least not right away. While there’s no upfront cost to run a promotion, Groupon requires you to discount your products or services by at least 50 percent, and they then typically take a cut of 50 percent of the final selling price, leaving you with only 25 percent of your normal revenue. While you’ll undoubtedly see a major bump in traffic, your margins on that traffic will be slim, if they exist at all.

Playing the Groupon game is less about building profit and more about gaining mass exposure.

Do: Crunch the numbers.

When deciding whether or not Groupon a good fit, you must weigh the ROI of your promotion according to the same metrics as you would any other marketing tactic.

Examine every scenario to determine what your promotion will ultimately cost. What if 100 people jump on your deal? What if it’s more like 1,000 or 10,000? Can the potential benefits justify that level of investment? Or would your money be better spent elsewhere, such as a pay-per-click advertising campaign?

Do: Be strategic in your offer.

If you do decide that Groupon is a good fit for your business, make sure to structure your promotion so that it’s a win for you and your new customers.

Be creative and find a way to build an offer that minimizes the losses you must absorb and maximizes your ability to fulfill a short-term spike in demand. Focus on the products or services where your overhead is lowest and your profit margin is highest.

For example, let’s say you’re a personal trainer. If you offer a Groupon discount on your consultation services, you’re limiting the number of hours you have available to clients who are willing to pay your regular rate. However, let’s say you’re a personal trainer who also sells subscriptions to an online video coaching series. You can absorb an almost unlimited amount of cut-rate subscriptions without compromising your primary revenue stream.

Or, let’s say you run a beachside bed and breakfast. Executing your promotion in the off-season is a great way to reel in new visitors. If your doors are open, your operating expenses are fixed. In terms of defraying those costs, it’s better to be filled to capacity at 25 percent of your standard rate than to have only one or two guests at full price.

Don’t: Be afraid to negotiate.

A lesser-known secret of playing the Groupon game is that you can negotiate. When it comes to shaping your promotion, nothing is written in stone.

You can score a more favorable split on the take than 50/50. You can also cap how many discounts are available, which is a good way to safeguard your bottom line and make sure you don’t end up with more business than you can reasonably handle.

Groupon’s entire business model revolves around presenting great deals that people want to buy, so if you’ve got a good one, make them play ball. If they won’t agree to terms that work for you, either try another daily deals site, or pursue a different marketing strategy entirely. No amount of exposure is worth an arrangement that could potentially sink your business.

Do: Pay attention to the fine print.

Terms and restrictions can make or break your deal. Use the fine print to make sure your offer is one that your business can sustain.

Set an expiration date. Cite whether the offer includes tax and gratuity. Specify whether customers need to make an appointment or reservation in advance to use their Groupon. Determine which products or locations the Groupon applies to. Define whether the Groupon can be used in conjunction with other offers or specials. Limit how many offers can be used per customer and per visit.

Just be careful not to make the terms so restrictive that the promotion loses all value to your potential customers, or your Groupon will be a flop.

Do: Put your best foot forward.

When your Groupon lands in the inboxes of subscribers in your area, you’ll inevitably have an influx of potential new customers checking out your website, your Facebook page and your Twitter feed to find out more about you.

Make sure that your website is up to date and that it showcases the products or services being featured in your promotion in such a way that makes the decision to buy an easy one.

Make sure as well that your Facebook and Twitter streams are primed with interesting content and lively dialogue to boost your chances of scoring a like or a follow from these new visitors.

If you don’t have these critical elements in place before your Groupon hits, you won’t be making the most of the opportunity you have to be in front of hundreds or thousands of people who are in the market for what you have to offer.

Do: Understand that these are Groupon’s customers, not yours.

Due to privacy laws, Groupon cannot share the email addresses or personal information of those who have bought into your deal. So while you’ve gotten great exposure to these potential new customers, you have no built-in way to make a repeat appearance in their inbox.

Make sure that when these shoppers visit your website or come into your store, they have the opportunity (and incentive) to join your mailing list. If you don’t already have a list, now is the time to start building one.

Do: Bring your A-game.

The true value of a Groupon promotion isn’t getting a tidal wave of people through your doors. It’s the opportunity to convert those one-time deal-seekers into loyal customers and fans.

In order to do that, you must wow them. They may come in looking for a bargain, but if what they find is exceptional quality, value and customer service that go above and beyond their expectations, they’ll not only be more likely to come back and pay full price but also to spread the word about you as well.

Do: Make sure everyone’s on the same page.

One sure-fire way to guarantee that your Groupon customer will never come back is to make the process of redeeming their offer a hassle.

Hold special meetings or training sessions if necessary to make sure that everyone who’s on the front lines of your business understands the terms of the offer and how to handle any questions or complaints.

This is also a good opportunity to review your customer service standards and reinforce your expectations to ensure that everyone is prepared to do whatever’s necessary to convert, convert, convert.

Don’t: Alienate your loyal customers.

You know the old saying about new friends and old friends – one is silver and the other is gold. The same applies to customers.

In your efforts to bring new customers in the door, be mindful not to alienate those who’ve been happily paying full price all along.

If you’re going to Groupon, it’s an opportune time to simultaneously execute a customer appreciation promotion to reward these customers for their loyalty and show them that their business is always valued.

Don’t: Mistake Groupon for a marketing plan.

Let’s say you run your first Groupon promotion.Groupon is no substitute for a sustainable, long-term business growth plan. You get a huge response, so you stock up and staff up to meet the demand. The wave comes; the wave goes. Suddenly you’ve got a bunch of employees standing around staring at each other and more inventory than you know what to do with.

While running another promotion seems like the obvious solution to this problem, it’s no substitute for a sustainable, long-term, diversified growth and marketing plan.

You must realize that creating one Groupon offer after another will train old and new customers alike to expect never to pay full price and will ultimately devalue your products and services. You’ll end up caught in a cycle of dependency on discount shoppers and razor-thin margins that will make it next to impossible to ever actually grow your business. And isn’t that the point of running a Groupon to begin with?

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