Is Groupon Right For Your Small Business?

Groupon is perhaps best understood from the perspective of the consumer as you will see, it’s very easy to use and it provides a great way for people to discover new things to do, see, eat, and buy in their city.  As a consumer, there’s really only one thing that you need to do to to start using Groupon and that is go to Groupon.com and sign up! After signing up, you will get e-mails everyday about the featured deal in your city. Groupon also uses several channels like Facebook (via its Groupon app) and mobile phones (iOS, BlackBerry and Android devices) to reach customers.  According to Groupon, their average user is a web savvy, young, and social individual who is often looking to get out to find new things to do in his/her city.

How Does Groupon Work?

Groupon features one and only one coupon in your city per day which is e-mailed to thousands of Groupon users.  Groupon has a group of marketers that create a write-up for your deal and uses all their channels along with other social media networks (Twitter, Facebook, etc.) to advertise your deal.  Groupon requires that a number of customers buy your deal or the deal is off and Groupon only makes money (by taking a certain portion of your sales) if your deal is “tipped” or activated because it met the minimum number of sales. Comparing Groupon to your typical advertising medium (newspaper, radio, tv), Groupon customers are guaranteed because for one, they already bought your coupon, and secondly a minimum number of people did so.

Check out this video from Groupon to further learn how it works and how it can help your small business.