Groupon is the biggest “Deal-of-the-day” website in the United States. The first market for Groupon was started in Chicago in 2008 and markets have multiplied to 40 markets in most major cities across the country.
How does Groupon Work?
The company offers one “Groupon” per day in each market. The Groupon is an discounted offer for something to eat, do or support in that area. The catch is, a minimum number of people have to click to buy the offer before the deal is released and everyone can actually purchase it. If the minimum number is not reached, no one gets the deal that day. In other words consumers have nothing to lose, but everything to gain. This collective buying system is fostered by social media – when people really want to buy on offer, they can promote it on their personal Facebook page, Twitter handle and blog to encourage others to purchase and help unlock the deal. (http://www.grouponworks.com/)
Would it benefit your business?
Retailers do not have to pay any physical amount to Groupon because they take a portion of the sales you make from people purchasing the deal. This means they only get paid if you earn a return on your offer.When a group or business is interested in doing a Groupon offer, all they have to do is contact Groupon and they will be connected with a personal service representative. They will explain the deal they are interested in promoting and one of 12 Groupon writers will be assigned to write a unique script to feature that company and their offer. Currently, 97% of businesses that have run a Groupon offer want to repeat the service.
Check it out!
The main purpose behind Groupon is to encourage group action to promote through social change. Groupon has been found to be most popular among young adult female professionals. It is also popular among web-saavy, city-dwellers who like to go out and socialize two or more times per week. Have you checked out the Groupon market for Salt Lake City?