Are you one of those who loves discounts?
Then Groupon is made for you.
What is Groupon Anyway?
Groupon is an electronic coupon generating website which provides us with great deals and discounts on restaurants, fitness, travel and many more. All we have to do is purchase the service who’s deal we find enticing and print the groupon generated.
Yes It’s that easy!
Groupon was launched in 2008 and is known to be worth more than 1 billion dollars.
It uses the simple idea of generating coupons for their users to avail great discounts in their favorite places. These coupons range from 40% to up to 90% on the services provided by the one million merchants associated with them. It has amazing avenues for branding for a company with great advertising opportunities along with the provision of amazing deals for the customer satisfaction.
Groupon provides deals on services like food, health, fitness and many more. It does not provide us with deals for goods like electronic items etc.
Types of Groupon Deals
Groupon provides deals to satisfy customers coming from all walks of life. Some users love a good massage whereas some love to learn something new like kickboxing. Groupon disappoints no one.
It aims at promoting markets to their enthusiastic users looking for a way to explore their city in an affordable manner.
Here are some categories :
- Restaurants Bars and Lounges
- Hotels, Resorts, and Getaways
- Fitness centers
- Hair salons- manicures and pedicures
- Cosmetic clinics
- Academic Courses
- Local businesses
Check out this video to learn some cool tips and tricks to use on Groupon:
How Does Groupon Works Exactly?
When you select a deal you would like to avail, you have to purchase that deal. Once purchased, the website or the App generates a unique coupon.
Every deal offered by Groupon has two expiry dates. One for the deal and one for the coupon. Though the deals Groupon offers are valid for a time limit of 24hrs to 36 hrs, the coupon generated is usually valid for 6 months.
The Groupon generated is required to be printed. In order to avail services for the already paid coupon, an appointment is also necessary.
How Do the Customers Benefit from Groupon?
The most interesting factor of this company is the extent of discounts provided for customers. Deals save up to 90% of your money. The money saved in grabbing a meal for less than half its actual value or getting a well-planned travel ticket for 25% of its value is astonishing. There is no doubt that Groupon is a boon to those who wish to try out new things in thier city.
How Does Groupon Work for Business?
How Markets Associated with Groupon Gain Benefit?
Up to 500+ markets are associated with Groupon as of now and it is increasing. The reason for these many companies and markets to invest in this venture is the opportunity to have proper advertising on the right platform.
The reason they willingly provide discounts to the users of Groupon is to attract a new crowd. This makes the discount given a mere investment for long-term gain.
Also Check out: How does tinder work?
Pros and Cons of Using Groupon for Your Business:
Pros of Using Groupon:
- It Attracts a lot of Crowds: Groupon usually gains by the word-of-mouth or the emails for the deal-for-the-day. Groupon claims to have a staggering 49.1 million active global customers. With attractive new deals every 24 hrs, they gain a lot of crowds every day.
- It Increases the Reach of your Company: With about 48.3 million global active customers it provides the outreach your company requires and deserves too! Seems hard to imagine a venture like this a bad idea for your company doesn’t it?
- Builds Customer Relations: With such great exposure, this venture builds a sense of trust between the customers and the company. This could lead to a better long-term gain to the company. When a company X is exposed to a huge crowd of about a million customers, invariably it increases the bond and trust between the customer and the company.
- Pumps Local Businesses to a Bigger Platform: Groupon boasts to have pumped more than 13 billion dollars into local businesses to create a bigger platform for their benefit. Many companies and merchants use Groupon itself as a platform for advertising and attracting new customers towards them.
Cons of Using Groupon:
- Not so profitable Deals for Companies: The deals that Groupon gives does not always provide the best profits to local merchants. This is because of the way Groupon takes its commission. The method it follows is to fulfill a minimum criterion for each company. And after that criterion, a certain percentage of the money expended for the coupon is taken by Groupon which sometimes leaves the local merchants with peanuts!
- Effects Company Image: As the users are usually obsessed with the deals that Groupon offers, Groupon provides the company with customers but not loyal ones. The customers if finding a better deal somewhere else would be inclined to buy there. Hence not guaranteeing a long-term profit for those companies wishing to make their image better. Groupon proudly claims that around 90 percent of companies that offer deals the first time on the site ask to be featured again.
- Attracts Bargain-loving Crowd: Usually attracts a bargain-loving crowd who do not have anything to do with what the company’s values or vision.
How Does Groupon make money?
You must be thinking.
How does Groupon earn?
Groupon takes a commission for every coupon generated. For each merchant associated with a service they provide, a certain number of ‘groupons’ are promised to be sold. Once that benchmark is reached, for each coupon sold Groupon takes a 50% commission. This way Groupon is benefited with each coupon generated.
This can be understood better with an example: Consider X to be a company associated with Groupon. Groupon promises X that a certain N coupons will be sold before the deal ends. After those N coupons are sold, Groupon takes a commission of a certain percentage for each coupon (The commission Groupon takes is 50% of the money used to purchase the coupon)
Learn: How Does Paypal Work?
Frequently Asked Questions
1). How to Join Groupon?
Groupon provides exciting new deals everyday. You would be intimated about the deal with an email. You have to be a user on Groupon first to get those emails.
It is free to sign up on Groupon. Just sign up there and you will get some exciting deals right in your inbox.
2). Is there an App for Groupon?
Groupon boasts to be one of the 25 most used apps in 2016 with more than 150 million downloads! You can easily download the application on your smartphone for free.
3). How to Download the App Groupon?
- Go to App Store(If iOS) or Play Store(If android) and search for ‘Groupon’.
- Just tap on ‘INSTALL’. The application will be installed on your smartphone.
Once you install the application on your smartphone, Launch it. You can either register as a user or log in your user credentials to see all the exciting deals provided.
4). How Do I Request a Refund on Groupon?
Most of the refund policies differ with the deals. Some ground rules that Groupon follows is :
- If you are not able to print the coupon generated then you would avail a complete refund within three days.
- In other cases, you could send Groupon a message on their help desk.
5). How to Print Your Purchased Groupon?
You can print your purchased Groupon by simply clicking onto your name on the right and clicking on ‘My Groupons’. After searching for the Groupon you want to be printed, click on to the ‘Print Gift Card or Voucher’ on the right of that deal. Now you have your Groupon printed and you can avail it of the services required.
6). How Do I Redeem a Gift on Groupon?
You can select ‘My Gifts’ from the ‘My Stuff’ option in your profile. After searching and select the required gift you want to redeem. you can select the option – ‘Redeem a Gift Card’. After entering the code on the Gift Card, the gift amount is reflected in your account which you can use for your next purchase.
7). How Do I Update my Email Address?
For the app version that facility is not yet available, however, on the website Groupon, you can sign in to your account and in your profile, select ‘Account’ in which you can update your email without any hassle.
Go On, Tell Us What You Think!
Did we miss something out? Feel free to comment on the article “What is Groupon and How Does it Work?” and let us know!