Groupon, is it helping or hurting small businesses
Digital coupons and social buying are all the rage right now. Should we thank Groupon for all the excitement and hub-bub? I’ve had multiple clients ask me what’s up with Groupon and if it’s changing the way we do business online.
First, it’s important to know that Groupon is the fastest growing company in history, attracting lots of competitors such as LivingSocial. Groupon rejected Google’s $6 billion offer and is now reporting to prepare for a $25 billion IPO.
Secondly, does everyone benefit from Groupon? Not always. Some businesses have been hurt by using the daily deal as a way to bring in new customers. Some businesses have had new customers walk through the door and only use their coupon and not purchase additional items. Another big question is loyalty and trust. Many establishments like salons and beauty industry have customers who have been with them for years and don’t always believe in attracting new customers through coupons or deals. Some folks out there wouldn’t go to just anyone for a haircut, massage or waxing.
Groupon isn’t fading from the spotlight anytime soon. They have something new up their sleeves! CNN recently released an article called “Groupon’s ambitious plan to change how and when we eat” – Groupon is releasing a new mobile app called “Groupon Now“. If a user opens up the app, they are presented with two buttons: “I’m hungry” and “I’m bored”. Clicking either button will list timely daily deals based on their location. The offer of buy $5, get $10 worth of food still stands, but they aren’t one time offers. The restaurant can choose when they want to deals to happen. For example: A restaurant does a great job on Friday night, but wants to drum up more business on Tuesday nights. The app allows the restaurant to promote the deal for the slow Tuesdays. It’s clever because it gives food establishments a chance to manage their perishables and not waste food and money.
What are your thoughts about Groupon? Do you use it or its competitors to purchase deals? Have you used it for your business?
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I'm Nedra Rezinas:a Portland women with a background in web design, project managment, E-commerce, and providing green web hosting. Join me on my journey as I explore different marketing and e-commerce strategies that can help your business! 
