Discounts are all the rage these days. Companies like Groupon, LivingSocial, and our hometown neighbors Scoutmob are all selling half-off coupons to restaurants designed to generate demand. As the numbers for these companies indicate, these businesses are pretty successful at it. 

However, when you talk to some restaurant owners, they feel differently about them. They complain that the coupons mean they sell food at a loss to cheapskates they'll never see again. They grudgingly buy the marketing programs, then either "run out" of the food on offer or sigh when you present your coupon. Often, they end up canceling the promotion, declaring a loss and shaking their heads.

The feeling is understandable. However, when you look at the big picture, there's a lot to be learned from how this process works, and how restaurants do react versus how they might otherwise choose to react. In particular, there are a few lessons that, if properly applied, could benefit a business, be it a restaurant or a startup: 

Metrics Matter: What's the average ticket size of a Scoutmob user before discount versus the average ticket size of a regular user? What's the profit? What kinds of foods do the Scoutmob users buy verus the average users? If you can't answer these kind of questions, you can't truly know if your campaign was a success, or how to tweak it to get more value.

In the same way, metrics about conversion rate, average revenue per user/account, and campaign cost/benefit are the lifeblood of a startup. If you're not on top of the key metrics on at least a weekly basis, you're out of touch. (We wrote another article a while back about how to build better metrics, if you're interested).

Engagement = Opportunity: With a program like Scoutmob's, restaurants get lots of new traffic. Customers come in willing to try a few things because their risk is lower. Instead of only offering a broad coupon, what if you offered a complimentary sampler for new customers to show them your range? What if you actually collected their email address (either from the coupon company or the person themselves)?

If you get people into your startup's service on a free plan, then use that connection. Engage them. Ask a few questions, early on. Be consistent. A free customer is spending money on something, somewhere. Maybe you don't want to sell that particular thing, and there's no fit. But you owe it to your shareholders (in many startups, that's yourself by the way) to find out.

Gratitude Is The Only Attitude: When some restaurant owners see a Scoutmob customer, they just say, "there's half my revenue out the door", and it affects the way that they treat the customer, even if it's only subconscious. The customer picks up on that and may not choose to come back unless they were wowed by the food. And let's face it, it's hard to wow people these days. 

In your business, it can get to be a grind. Customers complain, or ask for more things for less money. It's easy to develop an ungrateful perspective. Watch out for this! If you let that attitude calcify, it will enter all aspects of your business, down to customer service. Then you'll start to lose customers and won't know why. On the other hand, if you show a genuine appreciation for and interest in your customer, they'll reward you with valuable market knowledge and long-term retention.

By keeping an eye on the ball with metrics, making the most of every lead, and treating your customers like they are the people putting food on your table (because they are), you'll have a deeper and more productive relationship with your customers. And yes, you will also make more money.