With any promotion, especially a new one, you always have to wait to find out whether it was successful or not. Despite the fact that with group buying site promotions you pay per voucher sold, and despite the fact that you receive payment from the advertiser (Teambuy in this case), there is still an enormous cost and risk associated with this type of promotion.
Finding out whether or not the promotion was truly successful or not may take months but it is important to track its effectiveness afterwards, and not just for a few months, but for years (take look at a cohort analysis if you haven’t already before). For this scenario we are only a month-and-a-half in and we a are new company, which makes it difficult to compare and really measure our success so far but this doesn’t mean we can’t start analyzing it. Here are a few things that we’ve considered already:
- Have our revenues increased?
- Have our revenues less discounts increased?
- Do we have repeat customers?
- Are we covering increased costs?
Our answers for the first three are all ‘yes,’ but our costs may take more time to solve. We’ve smashed our record for revenues even with discounts and we have repeat customers. As many as we would like? No, but it may be too early to tell still.
When we dig deeper we realize that previous customers did not increase spending at all. Almost, all of our increased revenues came from new Teambuy customers putting more emphasis on a successful campaign thus far.
Does the campaign cover its cost? Have we increased our customer base? Have we received a sufficient amount of repeat customers? Has this been profitable?
Until our vouchers expire in December these are all questions we will not be able to fully answer but analyzing the deal before it ends is just as important as analyzing it afterwards.
Here is some extra reading if you’re hungry for more ways to analyze group deal success: