Groupon – the dream website for bargain-hunters

‘Deal-of-the-Day’ website Groupon has been going from strength-to-strength since its launch in November 2008. Originally created in Chicago, the online discount site has become a global phenomenon in 44 countries; estimated revenues for 2011 have been placed in the region of $3b to $4bn.

The attraction of Groupon is obvious – it provides consumers with great deals; anything from saving money on local days out to a half price wedding at a beautiful manor house…it really is hard to say no, even if you hate leaving the house and have no intention of getting married! Groupon offers its customers all kinds of weird and wonderful things, most of which are at a ridiculously reduced price.

The marketing managers at the company haven’t missed a trick when it comes to direct marketing either; once your email has been submitted on your first browsing session, Groupon kindly keep you updated on the latest deal-of-the-day…every day! It’s hard for the modern bargain-hunter to resist when they wake up and the first thing they see on their smartphones is an email telling them that they can get a fish pedicure for a fraction of the normal price; and yes, I am talking from experience!

Geographical factors ensure that the maximum coverage is achieved by targeting deals to specific locations. Once the consumer has selected their chosen city- for example Cambridge or Ipswich- Groupon will then show deals that are based in and around these areas; after all, would it really be as successful if you were based in Leicester and told about an amazing deal in Norwich? No, people want local deals and this is why Groupon is so popular. Perhaps a major factor to their success is the fact that Groupon can afford to be picky with the offers they advertise. They will only represent companies that are reputable, thus increasing the consumers’ trust in the brand.

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