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Using Groupon to Promote your Car Dealership

Using Groupon to Promote your Car Dealership

It might be difficult to sell cars using Groupon, but selling the services your Dealership provides would be a piece of cake.

A Subaru Dealer in Seattle recently did Full Car Details for half price while a Ford Lincoln Mercury Dealer in Kansas City did a Brake Inspection, Tire Rotation, Charge System Test, Multipoint Inspection and a Car Wash for 66% off.

The days of clipping coupons out of the Sunday Edition are coming to an end thanks in part to social sites like Groupon. Dealerships nationwide are using Groupon to provide group coupons (hence the name) on products and services. And there are a couple of ways Car Dealerships could use Groupon to promote their brand.

Automotive Dealerships can promote themselves to Groupon’s massive email database by offering exclusive one day service specials, but there’s a catch. Groupon’s Group Coupon’s only go live if a minimum threshold is met by consumers. In smaller markets that number would be around 10 while in larger cities that number can be much much higher. This means at least the minimum threshold needs to be met before a group coupons go live. And consumers are only charged if the minimum threshold is met.

If you think Groupon could work promoting your Dealership feel free to contact us today. Also, check out our Schedule of Upcoming Automotive Marketing Webinars.

Views: 588

Tags: Marketing, Media, Social, advertising, automotive, digital, groupon, interactive, marketing


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Comment by Katie Urbain on November 17, 2010 at 10:03am
Hi Keith! I like your idea of using Groupon for selling cars. Has anyone done this? Has it worked? Did Groupon approve the deal? I know Groupon has to approve the deal based on what they know works and doesn't to make sure their marketing people don't put too much time into something that won't be bought - just curious about Groupon's thoughts on a coupon like this...
Comment by Keith Shetterly on November 16, 2010 at 4:33pm
Sometimes the sheer measurability of the Internet causes logic ricochets--what do most of the survey's participants know of their other marketing efforts in order to compare? Yes, GroupOn is a marketing effort, and as such we should expect some folks to not come back for a second time. And using the restaurant example from the article, if they run a coupon in the paper for a discounted meal, the tip issue comes up, as well.

The beauty of Groupon is that it DOES tell you where your $'s go. Not just for return business, but for the folks coming in. If we use the old $250 number for car sales advertising, for example, if you could actually create Groupons selling at $50 for a car sale at your dealership that are a guaranteed $500 off--well, you've covered your original advertising plus in most cases (all, if your smart) you've let less off the margin ($250) than a real negotiation often does. Taken to extreme at a hypothetical dealership that ran coupons that had to be redeemed before 3pm to beat a closing time of 6pm, you'd also save labor, lights, a/c, water, etc.

We live in the real and chase the hypothetical that will make us money. Groupon is showing a new way to control marketing costs to a known amount, and that's just the start. New car sales may never get there, even legally, but service can today and should.

My $.02 on what I consider the greatest marketing tool to come along in many verticals since the original newspaper ads.

Comment by Ralph Paglia on November 13, 2010 at 3:28am
Paul - Your main image was not loading, which is probably because of a copy and paste issue... Anyways, I grabbed a screen shot of the Groupon web pahe you referenced, turned into an image file and inserted it into your blog to replace the error image... Hope you don't mind, but it does make the article a lot better!
Comment by Kristen Judd on November 11, 2010 at 3:09pm
There's no question that customers love Groupon, but it does not always play for the participating business. The requirement that businesses deeply discount pricing on their deal and the cut that Groupon takes can make it hard to make money on the offer. You might think that it would still be worth it as a brand awareness campaign and that businesses would have benefit from Groupon customers becoming return customers, but a recent study suggests that not as many Groupon customers as you might think come back a second time to buy at full price. If you're interested in the study, check out this article If the right offer were constructed, Groupon could potentially work for a dealership, but it's good to go into the experience with your eyes open.

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