SMEs should consider going beyond simple money-off discounts, says Hanley, and think about ways they can add a product or service to the deal to make it more attractive. Your online deals should be original - not simply online versions of existing offline deals.
Understanding your limits
It is very important that SMEs understand their business limits before offering deals to a large audience, advises Hanley.
You should consider the maximum amount of coupons you can sell before launching a deal. This will be determined by the length of time it takes for your company to process an order and the total volume of business your staff can handle.
Instead of running deals for 9 to 12 months and being overwhelmed by the amount of custom, Snapicity recommends that SMEs run deals for an average period of 3 months.
Repeat business
Repeat business is the long-term aim of offering group discounts online, says Hanley. "We don't want [our users] to do a one-off deal and then just say goodbye to people."
To achieve this end, Snapicity creates a marketing package for users that supplements that company's online discounts and offers. For example, staff at a beauty salon could ask discount-using customers to sign up to an email list.
SMEs should also consider adding a 'refer a friend' aspect to their deals so that customers can spread the word. In other words, give your customers a supplementary offer that will either entice them back again or encourage them to help you advertise the deal.
Taking advantage
Online discount sites bring several advantages to SMEs.
"There is no risk involved. There aren't any set-up costs. There are a large number of sales in a very short period of time. You get brand growth. And the deal is being sent to people who want the deal," says Hanley.
SMEs don't necessarily have to have a significant online presence to make the most of group discount sites either. The sites providing these services will do the marketing for you via Twitter and other online channels.
Facing challenges
One of the main challenges facing Irish SMEs in the online discount space is that they don't feel they can reduce their prices any more than they already have, says Hanley.
"The best way around this is to come up with a package of discounts rather than a single offer on a single product or service. In our experience this works better for them," explains Hanley.
If your online deals are very successful, you may need to consider hiring temporary staff to handle the extra volume. This extra work may include responding to online comments associated with your deal and extra customer service tasks.
Make sure to collect as much information about your customers as possible during the deal. See if they will join your Facebook page or sign up to your email list, for example.
Discount sites are becoming increasingly popular among SMEs, but that popularity can be a double-edged sword. On the one hand, it proves that coupons are an effective means of marketing. On the other hand, the sheer volume of offers available online makes it hard to compete.
Remember that while large companies can sustain prolonged discount deals, smaller companies often do not have that luxury. Be careful not race to the bottom by making offers you can't sustain over the duration of the deal.