Would your business benefit from GroupOn?

I was taking part of a TwitChat on Tuesday with brilliant public relations professionals around the world. It is a fast-past discussion about the hottest topics in the industry. The first question had to do with the benefits, or potential image damage, of using coupon sites like GroupOn.com to promote your business.

The site just had a successful run promoting coupons for a $50 gift certificate to the Gap at a cost of $25 to the GroupOn member. Comments from the PR pros ranged from how to capture names, gain repeat business, provide quality customer service, managing ROI and maintaining brand reputation.

One of the most interesting questions asked was about brand reputation. Does offering such a deep discount hurt the Gap's image? Does the coupon speak to their ideal customers? Can it create customer loyalty? Can this promotional buzz hurt their image and business in the long run? 

Some thought the promotion made them look desperate. Others thought it was a great tool to attract attention and be seen as leaders in the emerging social media field.

I can see both sides. You have to know your ideal clients, what messages work best to motivate them to use your service/product, what gains their trust and loyalty and what turns them off. 

You have to be clear enough with your brand identity or you could really do damage to your reputation, and your bottom line.

For example, the Tennessee Smokies minor league baseball team offered a great discount on GroupOn. For just $20, you received 4 playoff game tickets, 4 hot dogs, 4 small drinks and 4 game programs- a $64 value. 

The brilliant part of the offer is it is only valid for two playoff games, both in the middle of the week; game days that historically would have low attendance. By offering this discount to a limited number of fans on GroupOn, even at a steep discount, they increase the number of people in the crowd. People who have to pay for parking. People who will probably visit the concession stand for more to eat or drink. People who may become new Smokies fans. And people who tell other people about the game and their experience.

So, is it fun to jump on the newest, hottest social media tool. Yes. Is it always the best idea. No. Knowing who you are trying to reach and what you need to say is still the best way of marketing your business. It's just not as sexy.