Groupon: The Best Deal Of The Day

Groupon Vancouver Social Commerce

Groupon:  only 18 months old, yet already valued at over $1 billion.  It’s safe to say that this innovative concept is at the frontier of social media marketing initiatives – and it’s changing the way local businesses make a name for themselves and get customers through the door.  So, what’s the fuss about?

Groupon is an online service that provides you with a deal every day – one really good deal every day in each city it services (think 50% off at a nice restaurant and for Groupon, that’s a pretty average sort of deal) .  The premise is simple:  businesses offer a discount (group coupon) that then gets sent to every Groupon subscriber in their city via email.  All subscribers who are interested can purchase the business’ offering at a steeply discounted price.  The customers get a great deal, and the business gets a massive, instant boost in visibility – not to mention an increase in word-of-mouth advertising and the chance to wow a large audience with customer service.  Groupon makes its money by taking a small cut of the discount offered. The business makes money on each sale that Groupon generates and the end customer gets a coupon for the product or service in question. Win, win, win.

The Catch

The catch for customers is that they only get the massive discount if enough other people also buy the groupon on that day. This provides people with an incentive to share the business’ offer via Facebook, Twitter, and other social networks.

Groupon does a few things that conventional advertising does not.  First off, it offers direct and measurable exposure.  This is measured through the number of emails sent out (the total pool of subscribers in the city), and through the number of users who buy and redeem their groupon at the business itself.  Businesses love seeing the direct results of their investment in advertising, and groupon delivers in this regard.  Not only that, Groupon has detailed demographics of its subscribers, which it makes available to prospective advertisers:


Second, Groupon is available to advertisers at no upfront cost.  Not only does this separate Groupon from other methods of local advertising, but it makes it afforable to smaller businesses looking for some visibility.  Groupon makes money on each Groupon redeemed at the business, tying their best interests to that of the business (always a positive when looking at advertising).

How effective are these ads at generating repeat customers?  Groupon seems to think they’re pretty effective, and has several case studies of success stories.  They also state that 97% of advertisers saw an increase in business, and 90% want to launch another Groupon.


While it’s too early to tell just how instrumental Groupon is as part of a local business advertising strategy, its advantages – low cost, focused audience and measurable return – are all compelling reasons to enlist Groupon to increase local visibility.

If you’re a business owner who’s interested in finding out more about how Groupon works, then visit :D They have several handy videos you can watch to get a better understanding of how you can promote your business and make a buck at it in the process.