To Groupon or not to Groupon …
I would suggest that the challenge for the arts (in particular) is not attract audiences once – but to get them to reattend, let alone with frequency.
“It is a great way to get people in to try your arena,” says Chad Nason, a Groupon spokesman.
Yes discounting can be one way to encourage trial, but the real risk is discounting the perceived value.
“… the burden is on us to put the best deal out there for places that people will go back to for full prices,” says Chad Nason, a Groupon spokesman. That seems an unwinnable challenge to me for a discounter?
The opportunity cost is significant “You are only making 25 percent of the full-ticket price,” says Melissa Grande, director of marketing for Pittsburgh Irish and Classical Theatre.
But beyond the size of the discount, the major handicap to the audience development potential of Groupon and similar discount schemes is that they do not provide the names and contact details of purchasers who redeem the offer. So, there is no way to continue (or even) start to engage with these first time attendees attracted by the discount and build an ongoing relationship.
Read more about Groupon in Can group coupons deliver what cultural groups want most: Repeat customers and revenue?