Entrepreneurs who have used Groupon for their business, what was it like? Good/bad experience? Was it worth it or did it devalue your business?

by maybeiamonreddit. Posted on Sep 09, 2020    1    5


Basically the title. I'm reading a lot of bad experiences, but am wondering if there are any with good experiences?


Comments

SenorTeddy 3

I'd have to say my experience started well and went sour. They brought a ton of sales with a huge influx of cash. We launched and had $30k in the bank by month 1. Instead of reinvesting this new capital into marketing strategies, groupon became our go-to strategy for sales. They dry up, and if you lower your price by a tiny bit, it'll spike back up. We kept dropping the price until we couldn't anymore, and then closed the business.

My advice is:

  1. Sell a variation of your product on groupon if possible.
  2. Use strategically. Testing out new products, launching, sales boost, etc.
  3. Turn it on/off liberally.
  4. Negotiate, some people pay as high as 50% to groupon which is excessive.
  5. Don't go into a price-war with competitors. I've seen several industries get extremely hurt because all competitors kept fighting to be cheapest. Everyone hurts in the long-term.
  6. Price match while it's active. Don't price match when its not.
  7. Upsell. Have other products/services available. You don't have to be aggressive, but you have to have it available.
  8. Utilize the traffic - With a big influx of customers, you have a lot of opportunity to find out where else they shop outside of groupon, e-mail marketing, building an e-mail list, etc. etc.

    TL:DR: Groupon can be an effective tool if used properly. Relying on it as a long-term marketing strategy is unsustainable.
Black_Magic100 3

Groupon will buy your keywords.. just an FYI. They will literally tell you that they are doing this... So people who are looking for your business will search for it with the intent to buy, see groupon, and then go buy your service from them.

locationtimes3 3

One time I used it and it was a complete nightmare. The other time was not a lot of business but a generally positive experience. It really depends on your business.

SheddingCorporate 6

You really need to be good at building, nurturing and growing your email list to get the best out of a Groupon deal. Most businesses use Groupon as a last ditch effect when they don’t understand marketing, then they wind up losing so much money and nothing to show for it.

I am a digital marketer. There are many ways to get new customers and keep them coming back for a fraction of the money you’d give to Groupon. Feel free to DM me if you’d like a 30-minute quick brainstorm session, no fee, no obligations. At ghe very least, you’ll walk away with some ideas you can try instead of going the Groupon route.

rustyreel 5

Cheapskate leads, sometimes recurring customers but mostly one time cheapskates. My experience.