How Effective are Groupon Promotions

GROUPON Promotions For Businesses? How Effective Are Marketing circles have been abuzz in recent months with the sky-rocketing popularity of social promotion sites. At present, Groupon is perhaps the best known and certainly the largest one of these sites. It features a daily deal for each city it operates in, offering consumers a significant discount for a local business or event, such as $40 worth of sushi for $20, or a $175 facial at a spa for $59. THE NUMBERS (U.S.) 5 18 700+ million subscribers million Groupons million dollars saved sold in North America in North America $30 57% average Groupon average Groupon discount $2,000,000,000 $500 million profit for 2010 (est.) estimated revenue for 2010 $6billion last acquisition offer made by Google on Dec. 3 2010 GROUPON COVERAGE Groupon is expanding in the US and Worldwide - launching Groupon Hong Kong. Groupon Singapore, Groupon Philippines and Groupon Taiwan. With the recently announced Groupon Stores, businesses can now create and launch their own deals whenever they want. Stores are launched in Chicago, Dallas, and Seattle for now - more cities and functionality coming soon. THE COMPETITORS Groupon LivingSocial GILT Buy With Me Website groupon.com livingsoeial.oom gilt.com buywithme.com Founded 2008 2007 2008 2009 Headquarters Chicago Washington D.C. New York New York Funding $171 million $232 million $83 million 821.5 million Daily Unique Visitors (est.) 750k 450k 250k Cities Covered 185 140 26 Respondents largely indicated annoyance at the barrage of calls they receive from these competitors on a daily basis, and most reported a lack of success when using them to offer a promotion. Phrases such as "rip off", "imitators", "ineffective", were employed, and respondents told us that the competitors "never proved anywhere near the results that Groupon did", and that "Groupon will beat out the competition, it is still the 'Kleenex' of the business model. PROFITABLE vs. UNPROFITABLE In a survey-based study of 150 businesses that ran and completed Groupon promotions between June 2009 and August 2010, it unearthed the following insights... 82% 66 profitable 31% 32 unprofitable % clients buying more than Groupon value % clients repurchasing a second time % businesses running another Groupon in the future Compared to those companies that saw profitable Groupon promotions, those that ended up with unprofitable promotions were reported as also having significantly lower rates of "both spending by Groupon users beyond its face value (25% vs. 50%) and return rates to purchase from the business again at full prices (13% vs. 31%)." I PROFITABLE I UNPROFITABLE DEMOGRAPHICS the typical Groupon subscriber is.. Female 77% are women while only 23% of the subscribers are men Young 68% of the subscribers are between 18 and 34 years old Single most subscribers are single (49%), while only 33% are married, 12% living with a partner and 6% divorced / separated / widowed SIMAri 50% have a bachelor's degree and 30% have a graduate degree Wealthy nearly 70% of the subscribers have over $50.000 yearly income Comments by Business owners who ran Groupon promotions Happy for increased traffic. Restaurant, Western U.S. I think it's brilliant. Quick influx of cash. Great visibility for our business created amazing traffic to the site the day we were featured. It's a great new client acquisition tool. -Service business, Northeastern U.S. Most of the customers had never heard of our business before and were coming for the treatnment based solely on the deep discount of the service. They also did not feel as though it was necessary to tip the associates servicing them the appropriate amount because they were receiving the service at a discounted rate. - Spa & Salon, Western U.S. The downside of Groupon is that you never see the guests return because they are bargain shoppers! - Restaurant, Southern U.S. Customers constantly printed the same coupon... or copied one coupon over and over and tried to use them after the original was redeemed. Our staff had to create an online monitoring web page to prevent multiple uses - Restaurant, Southern U.S. Sources http:lipapers.som.com/so3papers.ctmPabotract_id=1696327 htplipaubuer orglrchivesgroupon-math-datasoraping-lo-esimate-revenu htpechounch.com/2010/0502eardown-groupon htp:/kara.althingsd.com/20101203lexdlusive-groupon-annual-revenues-actually 2-bilon hpwww.grouponworks com My Coupon Codes The USA Number í Coupon Codes Website GROUPON Promotions For Businesses? How Effective Are Marketing circles have been abuzz in recent months with the sky-rocketing popularity of social promotion sites. At present, Groupon is perhaps the best known and certainly the largest one of these sites. It features a daily deal for each city it operates in, offering consumers a significant discount for a local business or event, such as $40 worth of sushi for $20, or a $175 facial at a spa for $59. THE NUMBERS (U.S.) 5 18 700+ million subscribers million Groupons million dollars saved sold in North America in North America $30 57% average Groupon average Groupon discount $2,000,000,000 $500 million profit for 2010 (est.) estimated revenue for 2010 $6billion last acquisition offer made by Google on Dec. 3 2010 GROUPON COVERAGE Groupon is expanding in the US and Worldwide - launching Groupon Hong Kong. Groupon Singapore, Groupon Philippines and Groupon Taiwan. With the recently announced Groupon Stores, businesses can now create and launch their own deals whenever they want. Stores are launched in Chicago, Dallas, and Seattle for now - more cities and functionality coming soon. THE COMPETITORS Groupon LivingSocial GILT Buy With Me Website groupon.com livingsoeial.oom gilt.com buywithme.com Founded 2008 2007 2008 2009 Headquarters Chicago Washington D.C. New York New York Funding $171 million $232 million $83 million 821.5 million Daily Unique Visitors (est.) 750k 450k 250k Cities Covered 185 140 26 Respondents largely indicated annoyance at the barrage of calls they receive from these competitors on a daily basis, and most reported a lack of success when using them to offer a promotion. Phrases such as "rip off", "imitators", "ineffective", were employed, and respondents told us that the competitors "never proved anywhere near the results that Groupon did", and that "Groupon will beat out the competition, it is still the 'Kleenex' of the business model. PROFITABLE vs. UNPROFITABLE In a survey-based study of 150 businesses that ran and completed Groupon promotions between June 2009 and August 2010, it unearthed the following insights... 82% 66 profitable 31% 32 unprofitable 8% % clients buying more than Groupon value % clients repurchasing a second time % businesses running another Groupon in the future Compared to those companies that saw profitable Groupon promotions, those that ended up with unprofitable promotions were reported as also having significantly lower rates of "both spending by Groupon users beyond its face value (25% vs. 50%) and return rates to purchase from the business again at full prices (13% vs. 31%)." I PROFITABLE I UNPROFITABLE DEMOGRAPHICS the typical Groupon subscriber is.. Female 77% are women while only 23% of the subscribers are men Young 68% of the subscribers are between 18 and 34 years old Single most subscribers are single (49%), while only 33% are married, 12% living with a partner and 6% divorced / separated / widowed 50% have a bachelor's degree and 30% have a graduate degree Wealthy nearly 70% of the subscribers have over $50.000 yearly income Comments by Business owners who ran Groupon promotions Happy for increased traffic. Restaurant, Western U.S. I think it's brilliant. Quick influx of cash. Great visibility for our business created amazing traffic to the site the day we were featured. It's a great new client acquisition tool. -Service business, Northeastern U.S. Most of the customers had never heard of our business before and were coming for the treatnment based solely on the deep discount of the service. They also did not feel as though it was necessary to tip the associates servicing them the appropriate amount because they were receiving the service at a discounted rate. - Spa & Salon, Western U.S. The downside of Groupon is that you never see the guests return because they are bargain shoppers! - Restaurant, Southern U.S. Customers constantly printed the same coupon... or copied one coupon over and over and tried to use them after the original was redeemed. Our staff had to create an online monitoring web page to prevent multiple uses - Restaurant, Southern U.S. Sources http:lipapers.som.com/so3papers.ctmPabotract_id=1696327 htplipaubuer orglrchivesgroupon-math-datasoraping-lo-esimate-revenu htpechounch.com/2010/0502eardown-groupon htp:/kara.althingsd.com/20101203lexdlusive-groupon-annual-revenues-actually 2-bilon hpwww.grouponworks com My Coupon Codes The USA Number í Coupon Codes Website GROUPON Promotions For Businesses? How Effective Are Marketing circles have been abuzz in recent months with the sky-rocketing popularity of social promotion sites. At present, Groupon is perhaps the best known and certainly the largest one of these sites. It features a daily deal for each city it operates in, offering consumers a significant discount for a local business or event, such as $40 worth of sushi for $20, or a $175 facial at a spa for $59. THE NUMBERS (U.S.) 5 18 700+ million subscribers million Groupons million dollars saved sold in North America in North America $30 57% average Groupon average Groupon discount $2,000,000,000 $500 million profit for 2010 (est.) estimated revenue for 2010 $6billion last acquisition offer made by Google on Dec. 3 2010 GROUPON COVERAGE Groupon is expanding in the US and Worldwide - launching Groupon Hong Kong. Groupon Singapore, Groupon Philippines and Groupon Taiwan. With the recently announced Groupon Stores, businesses can now create and launch their own deals whenever they want. Stores are launched in Chicago, Dallas, and Seattle for now - more cities and functionality coming soon. THE COMPETITORS Groupon LivingSocial GILT Buy With Me Website groupon.com livingsoeial.oom gilt.com buywithme.com Founded 2008 2007 2008 2009 Headquarters Chicago Washington D.C. New York New York Funding $171 million $232 million $83 million 821.5 million Daily Unique Visitors (est.) 750k 450k 250k Cities Covered 185 140 26 Respondents largely indicated annoyance at the barrage of calls they receive from these competitors on a daily basis, and most reported a lack of success when using them to offer a promotion. Phrases such as "rip off", "imitators", "ineffective", were employed, and respondents told us that the competitors "never proved anywhere near the results that Groupon did", and that "Groupon will beat out the competition, it is still the 'Kleenex' of the business model. PROFITABLE vs. UNPROFITABLE In a survey-based study of 150 businesses that ran and completed Groupon promotions between June 2009 and August 2010, it unearthed the following insights... 82% 66 profitable 31% 32 unprofitable 8% % clients buying more than Groupon value % clients repurchasing a second time % businesses running another Groupon in the future Compared to those companies that saw profitable Groupon promotions, those that ended up with unprofitable promotions were reported as also having significantly lower rates of "both spending by Groupon users beyond its face value (25% vs. 50%) and return rates to purchase from the business again at full prices (13% vs. 31%)." I PROFITABLE I UNPROFITABLE DEMOGRAPHICS the typical Groupon subscriber is.. Female 77% are women while only 23% of the subscribers are men Young 68% of the subscribers are between 18 and 34 years old Single most subscribers are single (49%), while only 33% are married, 12% living with a partner and 6% divorced / separated / widowed 50% have a bachelor's degree and 30% have a graduate degree Wealthy nearly 70% of the subscribers have over $50.000 yearly income Comments by Business owners who ran Groupon promotions Happy for increased traffic. Restaurant, Western U.S. I think it's brilliant. Quick influx of cash. Great visibility for our business created amazing traffic to the site the day we were featured. It's a great new client acquisition tool. -Service business, Northeastern U.S. Most of the customers had never heard of our business before and were coming for the treatnment based solely on the deep discount of the service. They also did not feel as though it was necessary to tip the associates servicing them the appropriate amount because they were receiving the service at a discounted rate. - Spa & Salon, Western U.S. The downside of Groupon is that you never see the guests return because they are bargain shoppers! - Restaurant, Southern U.S. Customers constantly printed the same coupon... or copied one coupon over and over and tried to use them after the original was redeemed. Our staff had to create an online monitoring web page to prevent multiple uses - Restaurant, Southern U.S. Sources http:lipapers.som.com/so3papers.ctmPabotract_id=1696327 htplipaubuer orglrchivesgroupon-math-datasoraping-lo-esimate-revenu htpechounch.com/2010/0502eardown-groupon htp:/kara.althingsd.com/20101203lexdlusive-groupon-annual-revenues-actually 2-bilon hpwww.grouponworks com My Coupon Codes The USA Number í Coupon Codes Website GROUPON Promotions For Businesses? How Effective Are Marketing circles have been abuzz in recent months with the sky-rocketing popularity of social promotion sites. At present, Groupon is perhaps the best known and certainly the largest one of these sites. It features a daily deal for each city it operates in, offering consumers a significant discount for a local business or event, such as $40 worth of sushi for $20, or a $175 facial at a spa for $59. THE NUMBERS (U.S.) 5 18 700+ million subscribers million Groupons million dollars saved sold in North America in North America $30 57% average Groupon average Groupon discount $2,000,000,000 $500 million profit for 2010 (est.) estimated revenue for 2010 $6billion last acquisition offer made by Google on Dec. 3 2010 GROUPON COVERAGE Groupon is expanding in the US and Worldwide - launching Groupon Hong Kong. Groupon Singapore, Groupon Philippines and Groupon Taiwan. With the recently announced Groupon Stores, businesses can now create and launch their own deals whenever they want. Stores are launched in Chicago, Dallas, and Seattle for now - more cities and functionality coming soon. THE COMPETITORS Groupon LivingSocial GILT Buy With Me Website groupon.com livingsoeial.oom gilt.com buywithme.com Founded 2008 2007 2008 2009 Headquarters Chicago Washington D.C. New York New York Funding $171 million $232 million $83 million 821.5 million Daily Unique Visitors (est.) 750k 450k 250k Cities Covered 185 140 26 Respondents largely indicated annoyance at the barrage of calls they receive from these competitors on a daily basis, and most reported a lack of success when using them to offer a promotion. Phrases such as "rip off", "imitators", "ineffective", were employed, and respondents told us that the competitors "never proved anywhere near the results that Groupon did", and that "Groupon will beat out the competition, it is still the 'Kleenex' of the business model. PROFITABLE vs. UNPROFITABLE In a survey-based study of 150 businesses that ran and completed Groupon promotions between June 2009 and August 2010, it unearthed the following insights... 82% 66 profitable 31% 32 unprofitable 8% % clients buying more than Groupon value % clients repurchasing a second time % businesses running another Groupon in the future Compared to those companies that saw profitable Groupon promotions, those that ended up with unprofitable promotions were reported as also having significantly lower rates of "both spending by Groupon users beyond its face value (25% vs. 50%) and return rates to purchase from the business again at full prices (13% vs. 31%)." I PROFITABLE I UNPROFITABLE DEMOGRAPHICS the typical Groupon subscriber is.. Female 77% are women while only 23% of the subscribers are men Young 68% of the subscribers are between 18 and 34 years old Single most subscribers are single (49%), while only 33% are married, 12% living with a partner and 6% divorced / separated / widowed 50% have a bachelor's degree and 30% have a graduate degree Wealthy nearly 70% of the subscribers have over $50.000 yearly income Comments by Business owners who ran Groupon promotions Happy for increased traffic. Restaurant, Western U.S. I think it's brilliant. Quick influx of cash. Great visibility for our business created amazing traffic to the site the day we were featured. It's a great new client acquisition tool. -Service business, Northeastern U.S. Most of the customers had never heard of our business before and were coming for the treatnment based solely on the deep discount of the service. They also did not feel as though it was necessary to tip the associates servicing them the appropriate amount because they were receiving the service at a discounted rate. - Spa & Salon, Western U.S. The downside of Groupon is that you never see the guests return because they are bargain shoppers! - Restaurant, Southern U.S. Customers constantly printed the same coupon... or copied one coupon over and over and tried to use them after the original was redeemed. Our staff had to create an online monitoring web page to prevent multiple uses - Restaurant, Southern U.S. Sources http:lipapers.som.com/so3papers.ctmPabotract_id=1696327 htplipaubuer orglrchivesgroupon-math-datasoraping-lo-esimate-revenu htpechounch.com/2010/0502eardown-groupon htp:/kara.althingsd.com/20101203lexdlusive-groupon-annual-revenues-actually 2-bilon hpwww.grouponworks com My Coupon Codes The USA Number í Coupon Codes Website GROUPON Promotions For Businesses? How Effective Are Marketing circles have been abuzz in recent months with the sky-rocketing popularity of social promotion sites. At present, Groupon is perhaps the best known and certainly the largest one of these sites. It features a daily deal for each city it operates in, offering consumers a significant discount for a local business or event, such as $40 worth of sushi for $20, or a $175 facial at a spa for $59. THE NUMBERS (U.S.) 5 18 700+ million subscribers million Groupons million dollars saved sold in North America in North America $30 57% average Groupon average Groupon discount $2,000,000,000 $500 million profit for 2010 (est.) estimated revenue for 2010 $6billion last acquisition offer made by Google on Dec. 3 2010 GROUPON COVERAGE Groupon is expanding in the US and Worldwide - launching Groupon Hong Kong. Groupon Singapore, Groupon Philippines and Groupon Taiwan. With the recently announced Groupon Stores, businesses can now create and launch their own deals whenever they want. Stores are launched in Chicago, Dallas, and Seattle for now - more cities and functionality coming soon. THE COMPETITORS Groupon LivingSocial GILT Buy With Me Website groupon.com livingsoeial.oom gilt.com buywithme.com Founded 2008 2007 2008 2009 Headquarters Chicago Washington D.C. New York New York Funding $171 million $232 million $83 million 821.5 million Daily Unique Visitors (est.) 750k 450k 250k Cities Covered 185 140 26 Respondents largely indicated annoyance at the barrage of calls they receive from these competitors on a daily basis, and most reported a lack of success when using them to offer a promotion. Phrases such as "rip off", "imitators", "ineffective", were employed, and respondents told us that the competitors "never proved anywhere near the results that Groupon did", and that "Groupon will beat out the competition, it is still the 'Kleenex' of the business model. PROFITABLE vs. UNPROFITABLE In a survey-based study of 150 businesses that ran and completed Groupon promotions between June 2009 and August 2010, it unearthed the following insights... 82% 66 profitable 31% 32 unprofitable 8% % clients buying more than Groupon value % clients repurchasing a second time % businesses running another Groupon in the future Compared to those companies that saw profitable Groupon promotions, those that ended up with unprofitable promotions were reported as also having significantly lower rates of "both spending by Groupon users beyond its face value (25% vs. 50%) and return rates to purchase from the business again at full prices (13% vs. 31%)." I PROFITABLE I UNPROFITABLE DEMOGRAPHICS the typical Groupon subscriber is.. Female 77% are women while only 23% of the subscribers are men Young 68% of the subscribers are between 18 and 34 years old Single most subscribers are single (49%), while only 33% are married, 12% living with a partner and 6% divorced / separated / widowed 50% have a bachelor's degree and 30% have a graduate degree Wealthy nearly 70% of the subscribers have over $50.000 yearly income Comments by Business owners who ran Groupon promotions Happy for increased traffic. Restaurant, Western U.S. I think it's brilliant. Quick influx of cash. Great visibility for our business created amazing traffic to the site the day we were featured. It's a great new client acquisition tool. -Service business, Northeastern U.S. Most of the customers had never heard of our business before and were coming for the treatnment based solely on the deep discount of the service. They also did not feel as though it was necessary to tip the associates servicing them the appropriate amount because they were receiving the service at a discounted rate. - Spa & Salon, Western U.S. The downside of Groupon is that you never see the guests return because they are bargain shoppers! - Restaurant, Southern U.S. Customers constantly printed the same coupon... or copied one coupon over and over and tried to use them after the original was redeemed. Our staff had to create an online monitoring web page to prevent multiple uses - Restaurant, Southern U.S. Sources http:lipapers.som.com/so3papers.ctmPabotract_id=1696327 htplipaubuer orglrchivesgroupon-math-datasoraping-lo-esimate-revenu htpechounch.com/2010/0502eardown-groupon htp:/kara.althingsd.com/20101203lexdlusive-groupon-annual-revenues-actually 2-bilon hpwww.grouponworks com My Coupon Codes The USA Number í Coupon Codes Website