Page 1 of 7 12345 ... LastLast
Results 1 to 10 of 61

Thread: Groupon?

  1. #1
    Registered User
    Array
    Steve B's Avatar

    Join Date
    Aug 2008
    Location
    Louisville Kentucky
    Posts
    2,024

    Default Groupon?

    I just heard about this thing. After reading their website, I started asking around about it and it seems that a lot of people are participating and love it. Does anyone know any businesses that have used it? I can't figure out what their fees are - I'm curious about that too.

    If you haven't heard about it, you might want to check it out. According to their website, a local business makes a very generous offer in the form of a coupon and they send it out via e-mail to their members. Nobody gets the deal, unless some certain min. is reached so everyone is motivated to e-mail it to their friends etc. It seems too good to be true from both the business point of view (Generating lots of new customers) and even the consumer side (the offers are usually 50% off or more). A recent one was that if you paid $25 - you got a $50 certificate at the Gap.

    Anyone have experience with this on either side?
    Steve B

  2. #2
    Registered User
    Array
    Join Date
    Oct 2008
    Location
    rochester indiana
    Posts
    2,149

    Default

    very interesting steve...
    sounds brillliant ...with a big enough reason to join in...like the gap example...thats a real coupon!!!
    i can imagine that really going wild on facebook...if its legal there....
    ann at greenoak www.greenoakantiques.com

  3. #3
    Registered User
    Array
    Steve B's Avatar

    Join Date
    Aug 2008
    Location
    Louisville Kentucky
    Posts
    2,024

    Default

    Yes, they make big use of Facebook and Twitter to spread the word about the deals. Quite honestly, my biggest concern is that they might drive too much business to me too quickly and I'd have a lot of unhappy customers when I can't respond to them quickly enough. I'm thinking about it for my pet food delivery service. I currently have about 100 customers. It looks like a reasonable expectation would be 200 - 700 coupons being sold for such a thing. For instance my local Groupon has a local rest. offering a $20 coupon for $10. They have sold 707 coupons ... and counting! It didn't become a valid deal until they hit 100 - so the first 99 people were motivated to tell their friends. A massage place sold $60 certificates for $30. They sold 1,473 of them. As best as I can figurre, Groupon takes 50% of the cut. So they are actually only getting $15 for a $60 massage - but, obviously hoping to get a lot of repeat customers for the future.

    It sounds great for a repeat type of customer. For instance, the offer I'd make on my pet food would result in me losing a bit of money on the first bag of food in hopes of signing up the customer for future deliveries at full price.

    Of course, they don't have to agree to send out your coupon. My business might be too new - or because it doesn't have a physical location for them to check out. I'm not sure what their criteria is.

    There are quite a few competitors popping up also.
    Steve B

  4. #4

    Default

    I've am a Groupon user. I have only bought into one deal so far - $25 for a $50 coupon for a restaurant two blocks from my house. In Chicago, where it started, it is big. Unfortunately, for some small businesses, it is TOO big. Read this article from this week's Chicago Tribune: Growing with Groupon may be tricky for businesses -
    Surge of customers can hurt bottom line or alienate regulars


    It might work on the pet food business but would probably be a killer on the pet fence business. What would you do if 200 new customers called next week wanting a pet fence installed?
    Last edited by Business Attorney; 08-22-2010 at 12:20 PM.

  5. #5
    Registered User
    Array
    Steve B's Avatar

    Join Date
    Aug 2008
    Location
    Louisville Kentucky
    Posts
    2,024

    Default

    Thanks for the article David. It seems like such an easy problem to fix. Just put a max. on the number of coupons that can be sold. For my pet food business, I'd be thrilled with 50. Anything over 200 and I'd have serious problems answering the phones and getting the food delivered. Other than greed, I can't imagine why they wouldn't allow a max.
    Steve B

  6. #6
    Registered User
    Array
    Join Date
    Oct 2008
    Location
    rochester indiana
    Posts
    2,149

    Default

    thanks for the article..... i wouldnt mind the volume but i wouldnt like a discount under my cost.... i guess it wouldnt be happening down here in rural indiana anyway....
    ann
    ann at greenoak www.greenoakantiques.com

  7. #7
    Registered User
    Array
    Patrysha's Avatar

    Join Date
    Aug 2008
    Location
    Whitecourt
    Posts
    1,682

    Default

    I think there are many ways to entice customers without giving away the store, but you should consider the lifetime value of the customer before dismissing an idea as too expensive. It looks like they are trying to make it work for businesses of all sizes...considering the GAP giveaway that went down this past week...

  8. #8
    Registered User
    Array
    Steve B's Avatar

    Join Date
    Aug 2008
    Location
    Louisville Kentucky
    Posts
    2,024

    Default

    ann - they seem to be only targeting big cities. Their market is the young techno savvy group that get lots of thier info. from social media. They also need big volumes to justify their practice of only sending out one coupon a day.
    Steve B

  9. #9
    Registered User
    Array
    Join Date
    Oct 2008
    Location
    rochester indiana
    Posts
    2,149

    Default

    right....i can imagine a do it yourself version...like within your stores facebook community..... its a pretty new exciting idea...can you tell im trying to think up some things for my 800 fans...who get my message every timei send it....!!!
    ann at greenoak www.greenoakantiques.com

  10. #10
    Registered User
    Array
    Patrysha's Avatar

    Join Date
    Aug 2008
    Location
    Whitecourt
    Posts
    1,682

    Default

    I think the best thing to do to get customers engaged, talking, participating is the same thing in the store as it is on Facebook. Ask for their help! Not all the time or like you're indesicive or something...but I found I almost always sold an outfit when I asked for shoppers opinions on dressing the mannequins/busts (do you think this outfit looks better with this necklace or this one? or whatever...you can do the same sort of thing online.

    Contests are also a good way to engage. It doesn't need to be a big prize even a $10 certificate can go a long way to encourage participation when you're talking about customers who already know and love you...

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •