How to Compare Group buying websites (Cudo, GroupOn-stardeals,JumpOnIt,Spreets,ScoopOn)
Key Questions to ask Group buying websites
1. Min offer/voucher discount to be promoted: by year 2011..the minimum offer you as an advertiser is able to offer on the majority of group buying website is a 50% off or more. Group buying websites want to ensure the offer is compelling. Double check with when meeting with your group buying website.
2. Dababase Subscribers: how many subscribers would they send the offer/deal to?
3. Extra Marketing Push: Ask what others media channels/partners the group buying site uses to promote the offer/voucher…some uses morning tv shows, others uses boxes on popular websites.
4. Demographics: ask for just top 3-4 key demographics insights of their database and see if the demographics match your key consumer segments.
5. State database distribution: ask what is the database share per state and analyse if it is ok to reach the key consumers you want.
6. Client Support: ask what happens if something goes wrong…will you be able to phone them? 24/7 support or just monday to Friday? some offer support just by email which can be a pain.
7. Voucher buying duration: ask how long the offer is live for users to be able to buy it? Do you decide that or them? ask what’s best practice?
8. Voucher redemption duration: ask what min or max time for voucher to be redeemed? 1 month? 3-6 months? Do you decided that? Or them? Ask them what the best practice is.
9. Min Voucher buying for deal to be activated: ask them how many vouchers are need to be bought for the deal to be activated? do you dedice that? Or them? ask them what the best practice is.
10. Voucher codes delivery: if you are a retailer you will need to know how (what format) and how quickly (after deal is close) you would receive a list of the voucher numbers/codes that people bought.
11. Return policy: how friendly the group buying site is with voucher buyers who change their mind…Can customers return bought vouchers? any return policy?
12. Commission taken: What commission (% of voucher value) does the group buying website take? This is a key question. Not all of them charge the same. Consider the value of all their marketing channels used to promote your offer.
13. Payment: How and how quickly they will be paying your part of the offer?
14. Company profile and History: Who owns you and since when they have been in the market. You want to do business with a reputable and credible provider.
15. Other benefits: ask them if there is any other benefit for the public and you (as a client) for doing business with them. Some for example reward people who bring other buyers with a free voucher. Some offer you a dedicated account manager, etc.
16. Duplication from same customer: How do they minimize the chances of users buying more than one voucher and also not allowing more than one voucher to be used in one transaction. In some cases you might want just one customer per transaction to redeem a voucher. In some other cases you might want to allow a customer to buy as many vouchers and use them at any time. You might want to confirm this with your group buying website before signing up.