A “New” Business Promotional Tool
It may have been launched in 2008 but it is definitely new in the Milwaukee area. It is called Groupon.com. It is a daily coupon for an unbeatable deal on stuff to do, see, eat and buy in your city. They call it “collective buying power” since the participating businesses are promised a minimum number of customers in turn offering discounts not found anywhere else.
Miss Groove is a great example of its success. Miss Groove is a friendly neighborhood boutique located on Milwaukee’s historical Brady Street.
Pam decided to try out the new marketing tool and have a $35 gift certificate available for $15, which was offered on May 4, 2010. Just that day alone, the Miss Groove web site got almost 1,000 hits! Previously their highest was 70. Talk about exposure. As for the actually number of gift certificates sold, it was 173. I couldn’t believe the turnout. With all of those gift certificates sold, that means they all are coming into store as well.
With Groupon there is a commission, but it is worth it if you get a great turn out. Traditional marketing methods of radio and print advertising doesn ‘t necessarily guarantee the foot traffic into your store, but this does. If people are willing to go online and purchase the coupon, you’ve made a sale either way.
So how does it work (as a consumer)?
First sign up to receive the daily Groupon. When you find a deal you like, just click “Buy” before the offer ends at midnight. If the minimum number of people sign up, Groupon will charge your card and send you a link to print your Groupon. The Groupon has a redemption instructions and a map right on it. If there wasn’t enough people to join, no one gets the deal and they won’t be charged.
Since many Groupons have an expiration date, you don’t have to use the Groupon the same day you buy it. You can also buy a Groupon for someone else as a gift. The only catch is that if you decide to use it, try to use the whole Groupon value because you won’t receive store credit or cash back for whatever you don’t use.
Interested as a business to participate?
Check out how Groupon works for businesses
I had originally heard about it from Miss Groove’s web designer and my co-worker Sandy. It really intrigued me and when I found out the success I was astonished. I think this is going to be a great promotional tool in the area. So far it is in Madison and Milwaukee (for Wisconsin), but who know it just might expand even more. They are growing fast. Feel free to make a suggestion to Groupon for your city.