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The Scoop on Groupon Chelsea Patten, Staff Writer, Dentaltown Magazine

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With phrases like "efficient, measurable marketing" and "risk-free advertising" being thrown around by Groupon (www.groupon.com) and its followers, Townies are buzzing about how this new company is influencing the dental profession.

Groupon started from a Web site called The Point, an effort to affect social change with a collective goal-oriented approach. From fundraising to cause-support, The Point directs interested parties toward group action. Founder and CEO of The Point, Andrew Mason, took the same idea of collective buying power and translated into a locally targeted advertising medium – Groupon.

Here's how it works: Millions of people who have signed up free-of-charge at Groupon.com receive online coupons in their e-mail inboxes each day. Recipients have the option to purchase the coupon offering products or services at a heavily discounted rate. Potential buyers have 24 hours1 to decide whether they want the Groupon, however a certain number of buyers must commit before the deal is valid. If less than this set number of coupons sells, those who purchased are refunded their money. If the threshold is hit, customers receive the printable coupon in their e-mail inbox after the 24-hour period. Coupons are valid for a minimum of six months and with many Groupons, this time is extended.

So how does this apply to dentists? Groupon acts with the same goal as any other avenue of marketing – to get your name out there and to get patients in your practice. With Groupon's subscriber number at nearly 13 million, and availability in more than 90 cities, the avenue provides dentists with an already established audience. Dentists need not provide any up front advertising dollars to use Groupon. For each coupon sale, Groupon takes a percentage. After your ad runs for 24 hours, you receive a check in the mail. Groupon only benefits if the product or service sells. Since it's a one-time offer, once the discount gets patients in the door, it's the practice's responsibility to keep them coming back.

Townies have mixed feelings about Groupon. Here's what they're saying about this new marketing vehicle:
Sandy Pardue
Posted: 7/9/2010
Post: 68 & 64 of 104		 This is not for every practice. It's great for startups and for practices in areas that are really struggling. If a practice has empty chairs with a lot of open time or they are trying to build a patient base, perfect!

My clients have been utilizing Groupon for over a year now. It's been difficult for some to accommodate everyone, but this will vary from practice to practice and area to area. I recommend bringing in a temporary hygienist for a week or two if you have the space and can see more people. One client had such a huge response; he had to get another dentist to come in temporarily to handle the flow. It gave them a huge jump start with this practice he just purchased.
Brian
Posted: 7/9/2010
Post: 70 of 104		 After reading the reviews posted by Groupon users, it appears that many of them will be one-timers who feel "pressured" into taking care of dental problems at full cost after their basically free initial dental visit. Not the kind of patient that I want in my practice.
drlentau
Posted: 7/9/2010 & 7/14/2010
Posts: 74 & 82 of 104		 Some people said that Groupon is for startups or for offices that are struggling. I do not fit in to either of those classifications. I have had the most successful year of my career to date. From the patients who came in from Groupon, we have generated an additional $20,000 in production.
– Sold 513 Groupons for his Philadelphia practice
Mbonanno
Posted: 5/14/2010
Post: 10 of 104		 [These] are the type of patients that are going to give you the false sense of being busy, erratic and successful but when your blood, sweat and tears go into serving them and becoming a clinic, as opposed to a service-providing, quality-focused dental practice, you will be back at square one again. These are the patients that will go to your office because they are receiving a huge, out-of-this-world discount and will go to another office the next day. I would focus on my internal patients and sustainable growth.
Jonathan Abenaim
DMD FICOI DICOI
Posted: 7/11/2010
Post: 77 of 104		 …if you are in a good market like New York that sells say, 1,000 Groupons…that is a quick $25K that you just got as cash flow. Now if you get one percent of those to do work then it's worth it. If you have a new practice or a practice that has some chair time, Groupon works great. …Groupon is great for large markets; might not be the best in small markets.
davidjanash
Posted: 7/27/2010
Post: 98 of 104		 I have started to notice a "one and done" pattern with hygiene and Zoom patients, not surprisingly… I'm OK with it though, I just wanted as much exposure as possible…
– Sold 1,950 Groupons for his NYC practice
Ziro Marketing
Posted: 5/12/2010
Post: 5 of 104		 You don't usually make money on the first deal, with the obvious goal of repeat business. The good thing is you don't have any upfront costs, so if it doesn't do well you're not out thousands of dollars.
Some Townies are concerned that Groupon only provides one-time patients. Others think it's the best thing since sliced bread. Click here to rant or rave about Groupon with your colleagues on the message boards of Dentaltown.com and visit www.grouponworks.com for more information about how it works or to get your practice on board.
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