Groupon Drives Local Customers Through Social Marketing

Groupon is currently all the rage in the social media world and for good reason. It's a great service for customers and businesses alike. Customers take advantage of a great deal, and local businesses get new customers through the door.

 For those of you not familiar with groupon, a quick overview.

 

1) Groupon offers a daily deal in a growing list of cities, targeted at local customers. For example today's Boston deal is $50 for $100 worth of services at a local spa.

2)  The deal is only redeemable ("on" in Groupon lingo) once a certain number of people sign up for it. 100 people had to sign up for today's deal.

3) Once the  threshold is reached everyone who signs up gets the deal.

As we have discussed in an earlier post, social media and social marketing can be a tough egg to crack for small businesses because of the required time commitment and difficulty quantifying return on investment.

Not the case with Groupon.

A Groupon representative walks you through everything. Together you work on copy and images to craft your campaign. 25 minutes out of your day.

The service virtually guarantees a high return on investment.  You don't have to write a check, layout any money, or buy anything. The deal does not go through unless the agreed upon customer threshold is reached at which point Groupon pays the business a percentage of gross sales.  The customer threshold is nearly always reached.

In addition to the new customers walking through your door your business is exposed to tens of thousands of Groupon members, through the Groupon site and the daily email newsletter.

For what types of business does Goupon work best?

  • Restaurants - the bigger the better to accomodate the influx of new customers but small restaurants can extend the expiration date and require a scheduled reservation.
  • Spas - massage, manicure, pedicure. In this case the flexibility to increase staff is key to handling the influx of customers.
  • Entertainment Venues - Fill empty seats for theatre, comedy, & plays.
  • Tours -  Sell more tickets for boat, trolley, historical tours.

 

Who are the customers Groupon attracts?

Typical Groupon customers are young, single, college educated, have money and are happy to spend it on things that are important to them.

From the Groupon website:

They’re socially active, both online and off.

  • 50 percent go out twice a week or more
  • Habitual users of Facebook, Twitter, blogs, and other social media tools

They love Groupon…

According to a recent subscriber survey:

  • 66% read Groupon write-ups every day
  • 66% use Groupon primarily as a guide to explore their city

…And businesses love them.

According to a recent business survey:

  • 92 percent said Groupon brought in quality
    customers
  • 89 percent said those customers were
    likely repeat customers

 

Is your business a good fit for Groupon? Are you missing out on the benefits social marketing can deliver?

Contact Greenroom Interactive for a free consultation.

 

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Greenroom Interactive is an inbound marketing provider for the hi-tech, software and educational technology industries. The team is dedicated to helping businesses grow their online presence by creating intuitive web experiences to engage their target markets.

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Patrick Hopkins