Business owners are using Groupon, a new advertising tool, to market their goods and services at a discount.
However, some people hold the opinion that Groupon is a poor choice for a marketing tool, while others assert that it supports their company’s expansion and customer base.
So now, who is right and who is not? This is what you may be wondering. But I would say believe no one. Decide it yourself!
The post given below covers everything about this marketing tool, from how does Groupon works to pros and cons that will help you decide if it is good for your business or not. Let’s begin. But before that let’s know what Groupon Is? In case you don’t know.
What Is Groupon?
Groupon is a marketing app that offers c coupons, rebates on purchases, and group deals to consumers. Restaurants, retailers, and manufacturers use Groupon deals to lure customers into their establishments or to purchase their products.
When it was initially launched in 2008, there was just one single deal available daily. Now, vouchers are available for discounted products and services that can be purchased whenever there is a need without a minimum purchase threshold.
How Does The Groupon Work?
Groupon is an advertisement platform that works as a middleman between businesses and consumers. The platform works with various companies to create custom coupons and promotions, which are then marketed to consumers through the Groupon website and app.
When customers buy this coupon, they receive a coupon that can be used to redeem the offer at the participating business. Groupon collects money on their behalf and divides it into parts. Then the company takes a cut-off, and the rest of the amount goes to the business.
Overall, Groupon offers an easy and efficient way for businesses to reach new customers and for consumers to save money on things they want or need.
Pros & Cons of Using Groupon for Your Business
Following are the pros and cons to help you decide if you should use this new marketing tool to sell your product and services.
Attract Number of Customers
Groupon can help to attract a large number of consumers. You can get new clients by appealing to people seeking low-cost products and opportunities to save money.
Discounts work as a great tactic to get more customers to your company since people love to buy products when they’re on sale. When you advertise discounted products, specify if your deal is valid for a particular number of days.
If people know they only have a limited time, they will be more inclined to hurry in and look around. During this time, your business will experience more traffic, so you may need to schedule more employees during the discount period so service is smooth.
Sell the Product
If a company has some specific product and services that they are struggling to sell, then you can sell that product on Groupon at a discounted price to large audiences.
Suppose, if that sold product couldn’t make a massive profit out of that sales, at least customers get to know about your company.
This will create an impression in their mind, and when you launch a new product or service in the market, they will prefer you rather than choosing someone unknown.
Another advantage of Groupon sales is attracting more customers to buy your product. You can capture the email address once the customer has made a purchase or obtain other information to follow up on sales.
Now you can follow up on deals with a newsletter and provide your customer with special offers which may encourage them to make further purchases.
Help Your In Upselling
Businesses can use Groupon to sell goods and services that are similar to the product with a good profit margin or offer add-on options. For example, a computer bought on sale can lead to sales of printers, accessories, and computer supplies.
Free Up the Space of the Storeroom
Selling on Groupon helps you free up space in your storeroom. You might have a product you don’t plan on selling anymore and have been sitting in your store room for months. By selling those products on Groupon at a discounted price, you can make room for a new space.
This way, you would be able to catch every customer’s eye which only results in your business growth.
Boost Your Reputation
You may boost the company’s image if you choose Groupon and provide a discount to a specific set of individuals, such as the elderly or those in the armed services. When a business offers discounts to those in challenging situations or who may be experiencing financial difficulties because of income shortage, it displays that you are attempting to assist people. Many people perceive firms to be greedy for money. Thus any variation from that image might boost reputation.
Some Cons of Choosing Groupon for Your Business
Groupon Keeps 50% of Your Profits.
One of the significant disadvantages of selling on Groupon is that they keep 50% of your profit. Groupon sells your product at a 50% discount, and they also keep it 50% of your profit. So, what you get will be just half the price of that product sold.
Creates A Wrong Perception
The other major disadvantage of selling on Groupon is that it gives the wrong perception to the people. They think that the product is outdated or defective. As a result, they defy buying and also put a false impression on the image of a business brand.
Final Words: Is Groupon Marketing Really Worth It for Your Business?
So, yes, Groupon marketing is really worth it for your business. Because it is a great way to advertise your product and service to a large audience. This helps you increase traffic which leads to generating several leads.
Many prominent companies believe in Groupon and find this marketing tool a great way to drive sales. Savvy consumers who study reviews and keep an eye out for offers will also profit from this marketing app.