The Groupon Revolution: Online Group Buying For Offline Businesses
There is no doubt that since social media has become more popular, other Web sites have tried to use social media in order to make a profit. With the advent of Facebook, Myspace, and Groupon, social media has taken the world by storm.
Groupon takes advantage of social media and the group deal theory. A group deal can be thought of as a type of prepaid coupon. Through group deals, different businesses can offer products and services at an amazing discount. Groupon is one popular Web site that has succeeded in combining social media and group deals. Although the services that are offered by different companies can offer amazing deals to the customers who use them, many do not understand how it benefits the company.
The company has the right to set the stipulations of the deal and the price. The company can also set a threshold that Groupon needs to meet before the deal can be distributed to other Groupon users. Groupon charges the company a small fee for bringing in new customers.
Why Companies Use Groupon
After the customers obtain the group coupon and use the services or products that the company offers, that company may be able to enjoy new customers. However, it is up to the company to make sure that the customers keep coming back after the deal is over.
Groupon also gives companies the chance to ask new customers different questions about their experience with that company’s products and service. Companies can also ask customers how satisfied they are with the products or services that were offered. There are many different reasons why Groupon can help out a company. However, it is important for the company to be careful when working with Groupon. Some companies get too many customers. Those that get too many customers at one time are not able to handle it well enough. In fact, if they are not able to handle all of the customers that come in, they may provide poor service to the customers. This means that the Groupon plan failed and the company ended up losing money as opposed to gaining new customers and gaining money.
The Relationship between Groupon and Businesses
For the most part, the relationship between different businesses and Groupon is a satisfactory one. Groupon works hard to provide the right services to different companies based on what that company needs. However, establishing a business relationship is not that easy. In fact, Groupon normally accepts one out of eight business offers. Groupon is designed to be a city guide. It provides users with restaurants and other areas that the customer may not know about. Having said this, the chances of having your insurance company or shoe store featured on Groupon is very slim. It is mostly designed for restaurants, spas, and other businesses that focus on entertainment.
Benefits of Using Groupon
Groupon can provide different companies with an interesting opportunity. Groupon can also provide customers with different opportunities. For example, that customer can take advantage of purchasing items below retail prices. Customers can also take advantage of short term meal discounts.
Companies have the right to issue a minimum or maximum buyer’s requirement in order to ensure that they get a reasonable amount of customers. They can also state that the coupon is only valid when a certain amount of customers obtain the coupon.
Miles Walker is a freelance writer and blogger who usually looks at car insurance deals over at CarinsuranceComparison.Org. His most recent review looked at the best car insurance quotes.
Thanks Miles, very interesting post.
Great guest post. I have always been intrigued by Groupon’s services, they take out a full page ad in our local newspaper and offer some pretty great deals. That being said I am yet to take advantage of a deal. Interesting to know the business side of things. Thank you for sharing
All though Groupon poses a lot of potentials for any business, I still think that my business is not for EVERY business. Particularly not for my small business. I have tried using the service but I have come to realize that Groupon is just too big for my business because it bases marketing partnerships with small business on the popularity of that business’s feedback from online sources and press clipings. Not all business have their needed popularity so this can be a disadvantage.Still, Groupon can be a good choice for those who are compatible with it.
Nice post! I have just started my group buying business by purchasing a group buying plugin from joombac.com. It works perfectly with my existing joomla website and got everything look right with it. Most importantly, I can manage everything easily from its backend!! I can’t wait to get my business out from my little corner!!haha
Thanks for taking time for sharing this article, it was excellent and very informative it’s my first time that I visit here i found a lot of informative stuff in your article keep it up thank you.
great post. it seems that buying online gives more benefits for the businesses.. it was really amazing.. thanks for the post..
Thanks for this post! i really enjoyed reading it!!!