Most of us are familiar with Groupon, many of us have used it, and quite a few of us are even subscribed to receive the “Groupon of The Day.” So how does it work? Who benefits from it?
According to the Groupon their website, the site strives to “[make you] feel comfortable venturing out and trying something new-just because it’s featured on Groupon.” The company partners with businesses to bring about great deals on both services and products.
Of course consumers benefit through the purchase of a great Groupon (half off a manicure, no way!), but do the local businesses who offer them? Well Groupon obviously takes a cut of the proceeds made from each sale. No websites that I ventured gave any actual figures, however http://www.grouponworks.com said that Groupon only makes money if the advertised business makes money. Therefore no out of pocket payment is required to be featured on the website.
In addition, http://www.grouponworks.com listed four main reasons for any business to try Groupon:
1. Valuable new customers, guaranteed
2. Efficient, measurable marketing
3. Become the talk of the town
4. Big exposure, bigger word of mouth
Apparently, there isn’t much actual research on Groupon and how it benefits and/or hurts businesses both large and small. I will do my digging, and hopefully within the next month have new information on the Groupon premise. Stay tuned!
No comments:
Post a Comment