Groupon is the most-visited coupon website in the United States and has about 30 million unique visitors per month.
How To Be Successful On Groupon?. Many of you have probably heard about this popular coupon site. Since it was launched in 2008, it has become the most visited coupon website in the Unites States. Groupon’s mission is:
“To connect local commerce, increasing consumer buying power while driving more business to local merchants through price and discovery.”
And that’s exactly what they do. One of the myths about the company is that it will bring in tons of revenue to the small businesses that use it. This is not necessarily what happens. Companies offer their products on Groupon for heavily discounted prices, usually 50% or more, which can limit profitability. What Groupon can do, however, is expose a business to a new world of potential consumers. And, if handled properly, will encourage them to come back again and again. It also helps advertise a business, can help move inventory and builds lasting relationships.
Successful Groupon Tips
How can small businesses profit from Groupon? Here are a couple of tips from other small businesses who have already participated in Groupon:
- Watch the price point: Before determining what kind of discount to offer, do lots of research and ask lots of questions. You want to offer a deal that encourages your consumers to come back and spend more money. Don’t be afraid to haggle for the best profit margin for your business. Once a deal is launched, there is no going back, so don’t make the deal final until you have done your research and found out what will be best for the company.
- Limit the deal: Knowing how to restrain your coupon is also very important. You want to gain new consumers, and not just keep your current ones. So use coupons to drive consumers to certain locations of your business that don’t see a lot of traffic, or offer it for certain types of products that need to see an increase in sales.
- Be prepared with adequate staff: Once you start a Groupon, you will most likely see an increase in traffic to your business. If you aren’t prepared with the right amount of staff to help, you will end up delivering bad customer service experiences and shooting yourself in the foot. It may also be difficult to track all of the coupons, so be prepared.
- Spread the word: While Groupon does their part to help advertise its deals every day, you also need to help spread the word yourself. Make sure your consumers understand how to use the Groupon and also any restrictions that may apply.
So, now you know some of the best tips to help a small business succeed on Groupon. If you are careful about how you structure the promotion and are prepared for the outcomes, then it could be a success for you!