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A new trend in coupons, marketing and discounts exploded in popularity this past year. I am talking about Groupon.com folks! Have you used Groupon?

I read an article on Mashable last week that quotes the Founder and CEO, Andrew Mason:

“We’re thrilled that Groupon has earned the confidence of some of the world’s most respected investment firms. With their support, we will continue on our mission to change the way people shop locally and serve the world’s local businesses.”

How Groupon.com works: 

1. Sign up for their daily emails.

2. Check email every day for a new deal in the locale in which you live. For example, you could sign up for a large city (New York City, Chicago, Detroit, Miami) or a smaller area like, North Jersey, Lansing MI, Toledo OH, and Tulsa OK, etc.

3. Purchase any Groupon you want!  The deals are only available for purchase for a period of time (usually a 24 or 48 hour period), so you have to act fast!

*Some of the deals I often see include: dance classes, local restaurant deals, kickboxing lessons, salons deals (haircuts, dyes, nails and messages), dental appointments, car washes, and much much much more!

How could using Groupon be helpful to your business?

1. There is no charge to be featured on the site:

“There are no out of pocket costs associated with being featured on Groupon. We make money by taking a piece of each Groupon we sell. In other words, we only win if you win – and you know what you’re getting at every step of the process”. –Groupon.com

2. You are advertising to thousands, whether they purchase the Groupon or not:

“A Groupon feature puts you in front of thousands of subscribers in each Groupon city – with thousands more opting in each day. Our subscribers share your offer with everyone they know via Facebook, Twitter, and other social media. This buzz will continue to attract new customers for months following your feature”. –Groupon.com

3. Once you participate in a site like Groupon, you have access to contact information for all of the customers who pick up on your deal.  This enables you to continue marketing to them via mail, email, or newsletters with upcoming events, discounts and specials.

What are people saying about Groupon and LivingSocial?

Once I decided to research Groupon for our blog, I was curious to see how many friends have heard of or use Groupon, so I asked them.  To my surprise, my social network was not as involved with Groupon as I thought.  My brother said “I don’t use [Groupon], but know of it and know several people who use it (Living Social, too).” A friend told me that her and her boyfriend “haven’t actually purchased from Groupon yet, but [they] receive the emails so I’m always keeping an eye out.”

Many of the people I spoke with do frequent a variety of discount oriented sites like: restaurant.com, deal-on and Living Social, as well as coupon apps on their smart phones. One of my friends is hooked: “I LOVE Restaurant.com! These websites typically send out emails with a code for 80-90% off a purchase so you can get a $25 gift certificate (normally $10) for under 2 bucks!” An acquaintance said “I love Groupon, however I mainly use my coupon app on my phone.”

Those who subscribe to Groupon absolutely love it and have had amazing experiences with their deals and customer service.  For example, my friend’s wife “was less than happy with the quality of a product and Groupon was very quick to refund her money. Great idea, great company”.

Once Groupon started to gain popularity, similar coupon sites started appearing.  Even well known sites like Yelp.com have begun to offer daily deals as well.

If you think this type of marketing would be right for your business, I would recommend contacting more than one coupon-based site. This will help you reach a wider range of potential customers. As my (one day of) research shows, there are several options out there, each with it’s own community of customers.

Good Luck!