If you re the owner of a small business , you may be wondering if listing a deal on Groupon can benefit your bottom line. Although it may seem at first like an easy way to drum up new business, Groupon is not really that simple. Groupon is an advertising platform that is largely geared toward serving local markets. Businesses can use Groupon to promote their own discounts vouchers for services and products. Essentially, Groupon is a middleman that wants to connect you with people who will buy your services and products, because the more that people buy from you, the more money Groupon makes. The process is fairly straightforward:
- Digital Coupon Marketing – Statistics and Trends [Infographic]
- 4 Ways Facebook Messenger Ads Are Awesome (& How to Set Them Up)
- A Look at Some Interesting Digital Coupon Statistics
- Interesting Digital Coupon Marketing Statistics [Infographic]
- Do Coupon Codes Increase Conversion Rates?
- Coupon Statistics: 23 Jaw-Dropping Facts and Trends
Digital Coupon Marketing – Statistics and Trends [Infographic]
If you re the owner of a small business , you may be wondering if listing a deal on Groupon can benefit your bottom line. Although it may seem at first like an easy way to drum up new business, Groupon is not really that simple. Groupon is an advertising platform that is largely geared toward serving local markets. Businesses can use Groupon to promote their own discounts vouchers for services and products.
Essentially, Groupon is a middleman that wants to connect you with people who will buy your services and products, because the more that people buy from you, the more money Groupon makes. The process is fairly straightforward: You create a deal that is then listed on the Groupon website and possibly featured in its emails to local markets. Customers purchase your deal, and the company collects money on your behalf. Groupon takes a cut off the top; you get the rest.
A benefit to using Groupon is that it may expose your business to more ready-to-buy customers. When consumers use search engines to find a product or service, they re usually still in the information-gathering stage and may be a far cry from actually wanting to make a purchase. People who head straight to Groupon have usually already decided that they want to make a purchase and are looking for a deal.
Relying on Google to get the word out about your small business is not always successful because you re relying on its always-changing algorithms, and there s no guarantee your site will be shown on page-one search results unless you purchase advertising. In comparison, Groupon shows users everything on its site within a particular set of search parameters.
If your business matches what a consumer is searching for on Groupon, then your deal will show. Google s algorithms won t interfere. According to Statista. While Groupon uses small businesses to make money, its business model doesn t necessarily benefit them. There s no upfront cost for a business if it wants to list a deal on Groupon. However, Groupon requires that the business discount its services or products offered by at least 50 percent, and sometimes up to 90 percent.
Then, when a customer purchases a deal, Groupon takes half of the revenue. This point bears repeating: Groupon takes its 50 percent cut of every single deal sold—not just one—no matter how many you sell. Although Groupon boasts on its website that 91 percent of people who purchase deals will return or say they plan to return to the business later on for additional purchases, those statistics are refuted by other sources , which state that the majority of businesses that use Groupon complain of one-shot customers.
With this model, businesses can easily end up losing money. After offering a service or product at a discount and then allowing Groupon to take its cut, a company might not make a profit or even enough to cover the cost of what it s selling—especially if the deal doesn t help increase repeat customers. The good news is that if you find that you re losing money, Groupon doesn t charge any fees to pause or cancel the service.
Instead of offering one introductory service at a deep discount, you might try splitting your deal in such a way that requires people to give you more than one try. For example, if you offer guitar lessons, instead of offering a coupon for half off one lesson, offer half off a package of two lessons. That way, people who purchase the coupon will need to try you twice to get their full deal, and that may be enough to convince them to sign up for more. Setting limits on the number of vouchers sold or including restrictions to control how people can use their deals is also important, especially for small businesses.
If a deal is popular, you may get an influx of new customers and increased demand for your services, and you need to be able to handle it. Groupon is a solid advertising platform, has a good reputation among consumers, and is easy for business owners to start using. In the short term, Groupon and similar sites can be a powerful and effective way to generate new leads for your business. However, you should probably not rely solely on Groupon to grow your business.
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4 Ways Facebook Messenger Ads Are Awesome (& How to Set Them Up)
As mobile devices continue to become more prevalent in just about every area of our lives, so too do they increase in importance for marketers of all industries. Consumers are using mobile devices for purchases more than ever before. So why not cater to these tendencies and start offering digital coupons? No longer do you have to rely on print coupons in the newspaper or mailers.
Landing page optimization, call-to-action CTA placements and lead forms!
You only have 15 seconds to capture the attention of your website visitors. Statistics Source: By using banners or other inline content, you can turn first-time customers into email subscribers or social subscribers by enticing them with a coupon offer or a free shipping offer. You can also display the coupon in a header or footer that remains visible as the visitor scrolls up or down the page.
A Look at Some Interesting Digital Coupon Statistics
Yes, coupons are still thriving. See how coupons continue to drive record sales for merchants and big savings for consumers. Still think coupons are for grandmas? Coupons have gone way beyond the Sunday circulars. You don t even need scissors for many of them anymore. You can print them out, flash your smartphone screen to a cashier to get credit, or carry over a coupon code to an online shopping cart.
Interesting Digital Coupon Marketing Statistics [Infographic]
Ever since Coca-Cola introduced the first paper free drink voucher way back in , consumers have been addicted to the savings power of coupons. At their best, they are a powerful customer segmentation tool and can help you drive sales where and when you need them. But at their worst, coupons can be abused, and they can eat into margins if not managed carefully. But first…. When it comes to working with publishers, many marketers are familiar with display advertising, where advertisers pay publishers based on impressions or sometimes clicks. Coupon websites, in contrast, typically participate in CPA cost per acquisition affiliate marketing platforms. CPA marketing is distinct from more traditional advertising formats in that advertisers pay only for sales or conversions generated by their publisher partners. These networks act as an intermediary between you and the coupon website, tracking sales and conversions and handling payments between parties. On the flipside, affiliate marketing by nature allows your partners significant flexibility in how they promote you and requires more oversight. Coupons typically work best in markets that are highly competitive or commoditized as they can help your brand break through the noise and compel a shopper to buy from you through a significant discount.
Do Coupon Codes Increase Conversion Rates?
There has been resurgence in direct mail and it has created a higher demand. Everyone is online. This makes it difficult to really stand apart from you competitors on the Internet. I have advertised with Golden Mailer for over 10 years. Unlike the results of an Internet search, I am not one of the dozens of similar businesses fighting for attention.
Coupon Statistics: 23 Jaw-Dropping Facts and Trends
Well, Facebook recently surpassed two billion monthly active users on their site. There are easily thousands of other companies in your niche. So, what are Facebook Messenger Ads, and why should you care? How do you use Messenger Ads to drive sales, increase conversions, and qualify leads? Here are four things you need to know about Facebook Messenger Ads, plus some tips on how you can set them up today in just a few minutes. Facebook Messenger Ads are a relatively new ad feature that allow users who see your ads to initiate a text conversation with your business with the click of a button. Facebook currently offers a few different types of Messenger Ads:. These are all designed for advertisers to start conversations with users and drive interactions and sales. The destination style Messenger Ads show in your Facebook newsfeed like a typical ad, but the objective is vastly different.
Did you know that the very first paper coupon was released by Coca-Cola in ? Licensed under Public domain via Wikimedia Commons. By , the company had redeemed 8. The coupon marketing era has started. Where are we now? Coupons should be delivered to customers. And the best way to do so is to send an e-mail. But what if your email ends up in their spam? What shop owners should know about coupon usage in ?
This StatPack provides a visual overview of mobile and digital coupon usage in the US, in particular usage among grocery shoppers.
Statistics and Studies from more than 22, Sources. Total number of coupons distributed in the United States from to in billions. Total number of coupons redeemed in the United States from to in billions. Average face value of food and non-food free standing insert FSI coupons offered in the United States from to in U. Importance of discounts and coupons to the overall digital purchasing decisions according to internet users in the United States as of March , by age group. Most popular sources for finding online coupons according to users in the United States as of August Frequency of using coupons for online fashion purchases according to users in the United States as of August
Welcome to NCHMarketing. NCH clients, check out our Client Portals dropdown. Client Portals. NCH publishes various facts and reports about coupon trends to provide a market-level understanding of the activities driving coupon redemption volume and the importance of safeguarding the coupon funds that are motivating the sale of branded consumer products for retailers and manufacturers. Instant On-Pack Coupons: How Universal Coupons Impact Redemption. Valassis 2K19 Coupon Intelligence Report. Industry Trends. Trends and Expertise Coupon Industry Trends. We Can Help. To see how NCH s expert business advisors can make a measurable contribution to your success, call us today at