Groupon is a solid advertising platform, has a good reputation among consumers, and is easy for business owners to start using. In the short term, Groupon and similar sites can be a powerful and effective way to generate new leads for your business.
Time will tell what Groupon's marketplace model will mean for merchants. Regardless, you should probably not rely solely on Groupon to grow your business. Nor should you rely on it to save your business if you're facing serious troubles. If you are going to use Groupon, make sure you do some careful planning to ensure that you don't end up losing more money than you earn.
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Your Practice. Popular Courses. Business Company Profiles. Key Takeaways Groupon generates money through the sale of vouchers and card-linked deals, which connect consumers with local businesses. The company also sells goods directly to consumers in many cases.
Groupon has shifted its focus toward card-linked deals in an effort to streamline the process for customers. Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation.
Customers may be inclined to add in some regular priced items to their purchase since they just got such a great deal, etc. Depending on your needs, this might not make Groupon the most viable solution for growing your customer base.
Groupon makes it easy for businesses to set up merchant profiles and start putting deals together but there are many angles to take and things you can incorporate when setting up your deals to be sure they are successful. Food-service companies are very popular on Groupon and can attract shoppers with special deals on particular dishes and drinks. Restaurants are able to set up loyalty programs through the platform to help offset some of those cons we listed above and entice new patrons to make their first visit.
Hosting an event is a great way for businesses to excite customers and remind them why they love your brand. Selling tickets to your event through Groupon can really help market your event and get your message boosted to plenty of local deal seekers. Take advantage of the app and online tools offered by Groupon. This business, which makes videos to help children start learning to read, used Groupon to gain more visibility with parents and other entities not situated within the education industry.
When this archery instructional center opened in San Francisco, finding customers turned out to be more difficult than expected. Ohlone Archery found Groupon to be the most effective marketing tool to bring more customers and profits to their business. Just like a shopping complex, one day sales, everyone will go for it. If you keep doing one day sales, then everyone will wait for your one day sales and you already change their human behavior on your product. I been try to enter in Groupon promotion but too bad it only provide to business , that is foods, entertainment and relax purpose.
Thanks Steve…still deciding whether this applies to businesses like mine, which are online membership based? J Su Yin Not sure about membership sites and how that would work for Groupon. There are other groupon-like sites for online business services like AppSumo which you may want to visit as well.
Hi J Su Yin, Just wanted to chime in here. Done correctly — it will be a huge win for you! Good luck! Why not use Groupon as a way to extend your contacts?
That way you:. That is why other companies are making efforts to work more with businesses to offer daily deals that work for them….. Does Groupon accept that?? Yes, you just tell them that you want to put a limit on the deal.
They will want the highest limit possible. I agree that Groupon will cost your business an Arm and a leg and no one will remember your business. Good points, as always, about when to not use Groupon or other sites. But there are times when it works great. Great post. I have been thinking about doing a groupon but this post has made the decision for me. I came up with the exact conclusion when I looked closer at Groupons.
Try traditional marketing it is quiet expensive and not always measurable. Groupon is a billion dollar marketing machine because people love it and it works. No sane person feels ripped off after receiving a great deal at your establishment, remember they only compute the price they paid not the portion going to Groupon behind the scenes. Hopefully they have a pleasurable experience and you may just come to mind next time they have need of something your business can provide them.
From what I understand about marketing through promotions the best way to deal with this is not to look at profiting up front per se. The way to profit is on the back end. For example. Give the initial customer a promotion to get them in the door. And give their friends a referral discount when they invite more friends, and so on, and so on.
You see word of mouth is absolutely the best advertising you can get. Groupon is bad for business owner and consumers. Because business owners have to mark up the original price or cut down the quality or service to make up their discounts and Groupon fee. Groupon sent me an email every day, however, I only purchase one deal per month.
I guess for a business owner, to raise awareness, letting people know your existence is not free. So even if nobody buys any Groupon from the deal you offer, you get your name out to Groupon subscribers. If I decided to sell through them, when do I need to ship my product to them, I am selling high quality pearl jewelry, are they going to be save on their warehouse? There are two key issues with Groupon: 1. They cost service an arm and a leg.
You do not connect with customer… even the payment directly goes to Groupon. My take is build your customer base organically, I use mobile platform like FlashBind… It is like Groupon, but free. Also it builds my customer network… I can share my card with my customer and it is there with my customer for ever….
I can provide deals to my customers directly. I am hoping this platform or similar platform gains momentum…Everyone will benefit from such platform. Great article, thank you. What did you think about a business starting out?
I definitely agree that it usually hurts loyal customers. My marketplace disc golf is fairly specialized and I was able to track the response pretty closely.
Groupon give you tools to assist in tracking usage but now that the deal is done I have the opportunity to continue to market to those new clients that would have otherwise not even known of us.
The key is to capture the client information for future use. I am a small business owner and someone suggested I use Groupon. The payment schedule is unheard of. Those numbers were from A groupon rep in my email. Exposure for your business is the only good thing about Groupon. Thanks for the article. After reading a few different opinions of Groupon I have to say I think it depends on the kind of business you are running.
I think sites like Group and Restaruant. I personally always like to use things like Group to try a new place I have never been, then if it is great I keep going back. You probably would only get new business from deal seekers and nothing else. I have a client who I use the trail offer tactic for a lot. She does makeup for weddings, prom, etc and we post on facebook right before wedding season and prom about getting a free make up trial run for liking her page.
This tends to be especially effective with brides because they get to try you once and then they love it and use you for the big day as well as for the bridal party. I have considered trying an offer like this on Groupon but need to get more details.
I was glad to read more about how Groupon charges businesses for their services. Thank you for this blog!
After reading your article I agree with you that it could deteriorate the value of my product and business. Knowing that now is definitely going to make me take a closer look at the products that are offered on Groupon and question the quality of them. Groupon is not worth the hassle. Yes they make you discount your services down to less than half and then take half of that.
And yes the Grouponers bottomfeeders are loyal to Screwpon, not to your business. I am developing a mobile phone app to directly link small businesses to local consumers, no middleman! I would love to run the idea by small business owners to see what you think about it. If you are interested to know more about the app, please let me know. Geo-located, direct marketing app Free app for consumers Merchants pay a flat fee for monthly usage.
My wife did 1 Groupon and 2 Living Social deals about three years ago with her bed and breakfast. The secret with her is that she never ever bought into the claim that you have to give away your initial service at a loss because you will end up with repeat customers who will pay full price later.
In the end though, she still had to work her butt off to turn over and prepare all of those rooms for a very small amount of money per room night, compared to her regular rates. Innkeeping is sort of like airline seats. If the room is empty for the night, you get nothing. She structured it so that deal customers could only book on weekdays, when she is often empty anyway.
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