Further, these online communities are beginning to benefit financially from extended networks by buying together in groups. Groupon, one of the fastest growing companies in the world, has proven how this can work for ordinary consumers. Now, the idea is taking off amongst startups and small businesses.
Very simply, many individuals SMEs (Small and Medium sized Enterprises) desiring to expand are in need of business products and services but simply don’t have the capital to make purchases. At the same time it’s not really worth the effort for
B2B merchants to offer individual discounts as the acquisition costs for business clients are much higher. Acquisition costs as in the time it takes to explain to the prospect what solutions are available and how it will work, and to negotiate and agree on a deal. Throught traditional marketing channels, this could take weeks or even months to conclude.
In this situation progress is made very slowly if at all. The provider does not win new customers (but will carry on spending vast sums on marketing regardless) and the buyer’s business does not grow.
However, social media can bring these individual purchasers together in a short space of time and in volumes which makes economic sense. The more purchasers the better as economies of scale will justify higher discounts being offered.
SMEdiscounts.com allow B2B businesses to offer deals for free. Through this website, B2Bs can present themselves directly to thousands of ready to buy potential clients and receive an immediate influx of new clients. Much better than spending thousands for little return as happens with traditional marketing and client acquisition campaigns.
The question the B2B market is still asking is how SMEs will really benefit from featuring deals. In response to this question Andries Smit, CEO of SME Discounts stated: “There are numerous benefits to both buyers and sellers. Buyers benefit from signficant savings of up to 90% on quality business services and products, and sellers get new clients fast and without any upfront costs.”
In addition to the benefits outlined above, merchants (those that sell on group buying sites) also benefit from sites like SME Discounts, as the merchants deal will possibly be featured in print and pay-per-click ads, in press articles and blog posts, on Facebook and Linkedin pages, in tweets, direct mail and email marketing and beyond. So by featuring a deal businesses get free exposure and publicity.
The good group buying sites also don’t just sell clicks, or leads, or evenprospects. They provide merchants with actual customers – businesses that have already paid. This is a significant advantage as the normal B2B conversion cycle from prospect to customer is long and cumbersome.
Another benefit to look out for is that promoting a deal is usually free, with a commission payable only if buyers are obtained. This helps new startup companies and small businesses who usually struggle to spend large amounts of money to acquire new clients.
Group buying also provide both merchants and buyers the option of “local” buying or selling. Some businesses are able to sell to a national audience, while others are focused on local towns or cities. Good group buying sites let you market your deals either way, so you can target the most relevant customers.
Just as the internet has reduced the power of record labels and newspapers, can it do the same to marketing agencies? That may not be a bad thing for the agencies’ clients! All aboard group buying...
About SME Discounts SME Discounts.com is the “Group Buying” service of B2B SME services. SME Discounts provides discounted deals on marketing, operations, IT, finance and other B2B products and services. Helping SME’s to start and grow with 40%-90% discounts on their business products and services. We also help B2B businesses to attract new clients quickly and without any upfront costs or risk. Sign-up today to receive the latest discounted deals in your area or to grow your own company, it’s free!
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