Discount programs are everywhere and nearly everyone has now heard of them. What first began as a marketing niche geared towards bargain hunters has now mushroomed into mainstream consciousness with national programs such as Living Social and Groupon. Though it took awhile, the medical community has now jumped in too, with discounts on such services such as teeth whitening, laser hair removal, laser nail fungus, and cellulite reduction just to name a few. Whether your practice has participated in such a program yet or not, it is important to understand how this phenomenon may affect your business.
The Fundamentals of Discount Programs, Are They Worth It?
First off, here is a little primer on how programs like Living Social and Groupon work. These discounting companies use massive email databases to reach the inboxes of customers. Sure, an individual can opt-out of such emails, but most people don’t. After all, you never know when something you really want gets discounted. For those people on these email lists, they get AT LEAST one new offer EVERY DAY.
The participating business will offer a service at typically a 50% discount (or more) off their regular fee. So for the Customer, instead of paying $50 for a widget, they can now get it for $25. They pay the Promoting Discount Company (like Living Social and Groupon) directly and then get emailed a voucher for redemption. The promotion can run anywhere from one day to one week and once the program expires, the offer expires. At that point, the participating company will be emailed a list of names of customers who have purchased their service, along with a redemption voucher number. However, Read More