Like New Customers? Then You’ll Like Groupon

If you want new customers you’re going to love Groupon.  Very simply, it offers deals (coupons) to groups of people locally. But here’s the catch…the offer only triggers if enough people take the deal. Here’s how it works:

1. Every day Groupon features something cool at an unbelievable price. It can be a spa package, unbelievable clothing deal, restaurant deal…they cherry pick the very best local merchants so it’s perfect for boutiques.
2. The deal is sent out via email to subscribers in your local community.
3. The email is designed and the copy written by Groupon at no charge to you.
4. The deal triggers if the required number of people buy it and you set the trigger level. The trigger level encourages people to invite all their friends to participate and then these friends encourage their friends.
5. You have no cash outlay. Zero.  Just checks coming in if the deal triggers.
6. If the deal triggers Groupon collects the money, takes a percentage, and pays you for the Groupons sold.
7. You honor the Groupons (an official document printed out by the buyer) as shoppers come in. By the way, these shoppers tend to spend 50% more than their deal and end up becoming regular,repeat customers.  Be still my heart!

Shoppers love it!  They’ve bought over $5.9 million Goupons since it began.   I love the shoppers who love it because they are one of the most desirable demographic profiles going:

• young, active, employed, college educated and female
• active online and typically uses social media, so businesses see a viral and social impact over and above the actual Groupon purchase
• has money to spend and is in it for the daily game as much as getting a deal
• loves talking about winning the game with friends and colleagues
• is a buyer not a trier

In addition to the actual Groupon’s sold, and the new regular, repeat customers you get, you also benefit from the daily email blast that goes to the thousands of subscribers in your city, whether they choose to buy that day or not. Currently, there are 6.1 million Groupon shoppers in 66 cities (with more being added daily).  This kind of exposure at no cost to you is reason enough to add Groupon to your marketing mix.

According to Groupon, 97 percent of businesses featured want to be featured again.  And here’s two upscale clothing boutiques who can show you why.

Sanity a contemporary store in Chagrin Falls, Ohio offered a deal for people to shop at their boutique. 50 people had to buy at the offered rate of  $15 for the deal to trigger.  80 people took the deal, which if you do the math translates to $1200 worth of business for one promotion.  Plus, it drove 80 customers  into their store.  Great marketing!

The Denim Lounge, a contemporary denim boutique in Chicago set their trigger at 75 coupons.  They sold 1498 at $50.  Yes, you read that correctly, 1498.  That’s $74,900 in payola and 1498 potential shoppers traipsing around the store in butt-hugging jeans.  Now that’s a DEAL!

Have you used Groupon?  I’d love to hear about your experience.
Spread the love.  Must Love Boutiques.