Groupon is a Daily Deal website that offers substantial discounts in major markets across the country. Groupon negotiates deals with local merchants that are typically 50-90% off normal prices. They then send a daily email with the featured deals to subscribers. If enough people are interested in the deal and sign up, the deal “tips,” or is a go. Groupon (group coupon) is designed to offer a large discount to customers in exchange for exposure and a guaranteed number of customers to businesses. The terms of the deal, like the discount, the expiration date, and the number of people required to “tip” the deal is negotiated between Groupon and the restaurant.
Source: Nielsen @plan 2012
Groupon is all about gaining new customers.
Spreading the word about your restaurant in your community.
Attracting new customers with special offers.
You can log in to your vendor account on a computer or mobile phone to track Groupon redemptions. View your account on your Groupon vendor homepage or on Facebook.
Be prepared! The goal is to get new customers, so connect with them when they come in your doors.
Make your new customers feel valuable – don’t skimp on customer service simply because they are receiving a discount.
Don’t offer a discount for the price of a full meal – offer it for slightly less. For example, if your check average is $40, don’t offer a Groupon worth $40 – you’ll make no profit!
Be strategic! Offer deals for specifi c days of the week when your regular business is low. Use Groupon to help drive traffi c during your slower periods. Also, consider Groupon Now! which allows you to offer short-term deals for specifi c times of the day, like a lunch-only deal.
Save room for your regulars.
Don’t tweet about or post the deal to Facebook – those spaces are for your regular customers and people who already like you. Groupon attracts new people who might not have found your restaurant otherwise.
Still curious about Groupon?
Visit www.grouponworks.com to find out more information about how Groupon works for businesses.