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The Groupon Effect

The .com Success Story

Groupon is the marketing platform to potential buyers that small businesses do not have that gives them access to large networks of subscribers and creates opportunities to capitalize on any lead. Groupon is for reeling customers in, but once they are in, it's up to the business owner to provide a quality product and great service to ensure that you give the customer a reason to return. Allowing a business access to Groupon's vast network of user-friendly subscribers, the after success measure of the promotions is invaluable, with many businesses seeing surges in new customers.

The story behind the success:

Groupon, a name that blends "group" and "coupon," presents an online audience with deep discounts on a product or service. Buy it now, says the pitch: You have only so many hours before this offer expires. That's a familiar come-on, but it's coupled with a novel element: You get the deal only if a certain number of fellow citizens buy the same coupon on the same day. Its success are the coupons that are married to the Boxing Day/ Post Thanksgiving style shopping frenzy.

This can even be treated like a business in itself for customers; they can earn as much money for promotion of the company, and even learn some fundamentals about marketing too. Groupon has shown its worth in Germany, the UK and the US and has been spreading its charms all over the world. And New Zealand and Australia have recently joined in. Groupon daily deals are already available in prominent cities like Sydney, Melbourne and Brisbane, as well as spreading to places like Geelong, Perth and Toowoomba. Then with New Zealand, you can find good daily deals Wellington, Christchurch and Auckland on Groupon. See for yourself on Groupon Australia and Groupon New Zealand if your local area is included and your business could take advantage.

So how has it benefited these businesses' on a local level?

There is reduced risk for businesses' when negotiating a deal with Groupon due to a certain number of people need to sign up for the offer, then the deal becomes available to all; if the predetermined minimum is not met, the deal will not go ahead for that day. And apart from getting buyers from local areas because of individual Groupon websites it means that the deals will also be published on a national scale. Here is just one of many success stories from the Groupon coupon effect.

"We sold 700 Groupons in a few hours. This was a smart play for us because we needed exposure, we don't spend on "traditional" marketing and food costs are fairly inexpensive. Bottom line: It's a break even at first (if it's within your margins), if you have a business that thrives on repeat business you will see that it expanded your customer base and in turn will increase sales over the long run. We've seen an increase of 12% following the months after our Groupon ran." -Chris Sonjeow

Apart from increasing bottom line sales over a period of time, Groupon has now introduced a scheme for buyers of coupons to recommend a friend and when they sign up and purchase a coupon you will be credited for it.

More Stories By Anne Lee

Anne Lee is a freelance technology journalist, a wife and a mother of two.