

Groupon 1% conversion rate for salons - aristidb
http://dylancollins.com/?p=297

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Kique
I'm currently an intern at a large daily deals site. I often hear my bosses
talk about if businesses use our site and run deals, they'll attract a new
customer base that have never heard of them before. For some types of
businesses I can see that being true, but not really for salons. Our biggest
sellers our typically salon type services (mani/pedis, hair removal, massages,
etc.). Since customers know that these types of deals show up on our sites
often, why would they ever pay full price?

Say you got a deal for a $20 mani/pedi and you get great service and
everything goes well. A month later you need another one, and you see another
deal to a different place for $20 again. Our site, as well as other reputable
deal sites, only put businesses that have good feedback online, so the
customer is pretty much guaranteed to get a good experience regardless of the
salon - giving the customer no incentive to go back to the original salon.

