Group Buying – Smoothing demand to meet supply

A Targeted Voucher Program (like Group Buying) does more than simply increase brand awareness and consumer demand, it smooths demand to make best use of the available Supply, combine this will upsell opportunities and future loyalty and the returns will continue to flow well beyond the life of the promotion.

Running an above the line Brand promotion will make the target business top of mind for a new set of potential customers, hopefully creating lots of new Demand albeit the profile of that demand is likely to look a lot like existing demand, just more of it! For restaurants, that means what little availability there is on a Friday or Saturday will go first, and once they are gone, customers will be unlikely to settle for a midweek or Sunday slot instead, squandering the marketing investment and the opportunity to introduce your business to a new audience.


A Targeted Voucher Program is fundamentally different. Why? Typically, when a someone calls a restaurant to book a table they are planning an evening out, they have an evening in mind and are looking for a suitable restaurant to meet their needs, if their preferred night is full, they’ll call the next restaurant on their list; however when they call with a Voucher, they already have a restaurant in mind, they just need to find a suitable evening to redeem it, they have already made a commitment to your business after all (and paid upfront too!)! Voucher holders are willing to book well in advance to redeem their voucher, something an average patron is unlikely to do and upselling your Voucher holder to a weeknight at this point is the first step toward smoothing Demand.

At Cudo, we hear often from business owners that occupancy is significantly improved on Thursdays and Sundays as a direct result of running a promotion on The more popular the offer, the greater the impact is on weekday trade, yielding a significant gain in efficiency for the business overall. 


Making the most of this type of promotion is the role of the featured business, they have to embrace the promotion and the new interest generated, train their staff to upsell and make the most of customer loyalty.

But irrespective of how small the gap is between supply and demand, combine a Targeted Voucher Program with a booking system and you have a very powerful way to improve short to medium term occupancy – make the most of the Program and it will have a lasting impact on your business. 

2 thoughts on “Group Buying – Smoothing demand to meet supply

  1. What are your thoughts on the psychology of human habit? We need to visit a place of business about 3 or more times to form a new ‘habit’. Would a Cudo offer better serve a business if it had some kind of repeat business deal within a limited time period or have you found that this is not the case so far? Thanks

  2. Possibly, but making a business compelling is different from driving habit, Cudo makes the business compelling enough to drive that critical first visit, what happens next is largely up to the business. It is important though that the business in question has an existing loyalty program that they can put into action, no matter how simple. Cudo can help with that.

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