Tag Archives: groupon
Groupon Vouchers are they good or bad for business?
Daily Deals from Groupon we love it, every day you get an email promoting that deal of the day as well as a few others that ‘may’ be of interest to you, these are from local businesses in your area and generally have huge savings of 50%+.
So popular is Groupon that is has been floated on the stock exchange and is worth around $10 billion, it literally is THAT popular.
The principal idea behind the site is that Groupon delivers lots of new customer to local businesses, in return the local business offers a substantial discount to Groupon subscribers. Everyone is a winner, the business gets lots of new customers, the customers get a great discount and Groupon takes a % of the sale.
If you are thinking of moving your business offers onto Groupon beware as there’s an issue with this type of customer and that is to do with the quality of the customer the local business gets. The deal is so great that the customer is just buying the price NOT the service, for example an Oven clean that normally is £99 on Groupon is £29 a massive saving, but how likely are you to return to that business and pay full price next time?
Just this week a massive ‘issue’ has been highlighted when this Bakers offers were too successful – read the article from the Daily Mail here.
Also something that is often overlooked is the upsell potential, a week or so ago the national Groupon was Premier League tickets to Fulham vs Bolton for just £15 (684 people purchased this) all the add ons that go with football, program, burger, coffee etc will all be at full price AND Fulham will have the data to market future offers to
So does your business have the opportunity to upsell or add value offer everything at ridiculously cheap prices…and you get ridiculously cheap customers.
Think about that the next time you want to go ‘as cheap as possible’!
Who will ONLY buy if you offer the absolute lowest price.
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Groupon and the very local Exeter experience
Groupon surely the ‘hot’ company of 2011 – offering daily deals straight into your inbox every day to a specific geographic area – Exeter (in my case).
Groupon became a huge success by offering big discounts at local stores such as hair dressers and car valeting, emailing the offers every day to subscribers in the geographic market, such as Exeter or London. It’s not uncommon for the offers to be bought by thousands of people, who can redeem them any time over a period of months or even a year.
This success in way created an issue as for example in my case I am registered with Groupon in Exeter BUT what happens when I am in London, do I currently receive any Groupon’s? The answer a simple no….
So how is Groupon evolving and tapping what surely is a massive market? In simple terms they are rolling out a product called GrouponNow in the USA. Anyone familiar with Voucher Cloud or QuidCo will know how this works, in offering deals that you are near. GrouponNow in the states takes this further by in some cases making the offers time limited. Act now or miss out in other words.
This has got to be a great evolution of the Groupon Strategy and in using their massive subscriber base very powerful indeed, as a lover of Voucher Cloud I am very interested in how they may respond and address this encroachment into mobile territory. For Groupon this cant come to the UK quick enough, mobile is big and has been for quote a while and Groupon need to be part of this.
