Home > Consumer Driven Trends, Technology Trends > Groupon Collective Buying Power

Groupon Collective Buying Power

Written By: Jai ingersoll

Groupon has become a trend that offers a very useful tool for businesses to use with their online marketing campaigns. Groupon offers competitive daily deals with large discounts normally between 40% – 90% from top local business in over 100 U.S. cities.  The definition of Groupon taken from their site states, “Groupon uses the power of collective buying to create hundreds and thousands of new customers every day where each deal goes viral and often sells into the thousands”. Brands Groupon currently works with are consumer pacakaged goods, beer, wine, and spirits, fashion, accessories, diet and fitness, health and pharmaceutical, automotive, electronics, financial, beauty, entertainment, and travel.

For instance, you can purchase $40 for $85 worth of aromatherapy facials from A Healers Hand, located in downtown Madison, Wisconsin.  All deals includes a link to post to twitter, email, facebook send and facebook like.  Listed directly under the deal is a description of the business, a link to the website and facebook page,  testimonials , reviews and links to online articles,  and additional offers.

A referral service is offered in order to help facilitate and increase memberships.  If you refer a friend to Groupon, you can get $10 in Groupon Bucks once they purchase their first deal.  Groupon Bucks can be used toward any Groupon purchase, and they never expire!  You can share your personalized referral link using the tools listed on the left of the page by sending it via email, facebook or twitter.  If someone joins Groupon within 72 hours after clicking your link, Groupon will notify you within 24 hours of their first purchase and will automatically send $10 of Groupon Bucks to your account, and includes unlimited referrals.

GrouponWorks is the process by which business can set up a Groupon.  GrouponWorks offers businesses valuable new customers, efficient measurable marketing, and exposure via social media and face to face conversations.  Groupon can help you grow your audience, expand your market and deliver millions of qualified consumers with custom sponsorship and feature opportunities.  Groupon offers Merchant Services to educate merchants so they have the most satisfying Groupon experience possible with the highest return on investment through deal optimization, capacity planning tools, redemption cycle planning, editorials, webinars and simple redemption tracking.   They also offer a day of feature support to prepare you for the day of your feature with advice on customer service, website readiness, and discussion board practices.  Groupon can be consulted for feature support, promotion follow-up, best marketing practices, two-way ratings feature, and education via newsletters and webinars.   Groupon Now!™  Real-time deals that attract customers exactly when you need them.

According to an article in Time/Moneyland, posted in May of 2010, 23 million Americans bought daily deals at Groupon.  Mashable states that Groupon is worth $12.7 Billion, and began trading stock publicly as of Friday, November 4th, 2011.  Groupon’s top competitor is Living Social valued at $6 billion and climbing.  Groupon may or may not be a trend in the future, but with the type of marketing that can be done by almost any business using this tool, there will certainly be other new business models like Groupon popping up to join the bandwagon.

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  1. December 21, 2011 at 9:50 am

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