Groupon ~ Collective Buying Power
Groupon is a no-nonsense “group buying” site where users in over 35 major cities can join and participate in daily discounted offers by local merchants. Offers may include restaurants, events, or shopping. The more users who buy into the offer the greater the chance that the offer will be met ensuring that all that bought that particular offer will be able to take advantage of their purchase.
“Groupon.com is an easy way to get huge discounts while discovering fun activities in your city. Our daily deals consist of restaurants, spas, massages, theaters, hotels, and a whole lot more, in dozens of cities across the country.” ~ Groupon.com
Groupon relies on the power of the masses to make it happen.
1. How Does Groupon Work?
What it takes to get great deals!
Groupon works with local merchants in dozens of cities nationwide and internationally to bring groups of people huge discounts on local events, restaurants and shopping. Each day a new offer is emailed to the user and is also posted on the Groupon.com website. Groupon deals are only activated when enough people have purchased the deal so it is highly recommended that users spread the word to other users. Group participation is the key here.
Example: The trendy new night club in town is hosting the hottest new band in the area. Tickets for the event are $50 per person. Groupon will campaign to the club that if Groupon can get 250 people to buy tickets to the show, the price of the tickets for Groupon members only, will drop to $25 per person.
Groupon then presents the deal to its users via email and onsite, and as long as the user clicks to buy the ticket, the user will be able to take advantage of the deal should the minimum amount of people buy into the offer. Users are only charged if the terms of the offer are met.
The only thing is, if only 249 people buy into the ticket deal, the offer will not be honored and the user will not be charged for the ticket, nor will the $25 per person offer be available.
If 250 or more (depending on the offer, some are offers are limited to an exact specific quantity) people buy into the deal, then everyone is billed the $25 for the tickets and everyone is happy.
The more people can spread the word to friends, family, social networks, groups, and other users, the better the chances the offer will reach it’s minimum and everyone can take advantage of the deal. It’s a Win – Win for everyone when more people spread the word. This is not a site you want to keep to yourself.
Sharing socially saves!
Once you become a member by entering your email address or linking through Facebook, you will be taken to the Featured Deal for your area. You are able to change areas by selecting the city in the drop down field.
On the Featured Offer page you will be able to view details about the offer including:
- How much the offer costs
- How much the offer is valued at
- What the discount rate is
- How much you save
- How much longer you have to buy the deal
- How many people have pre-bought the offer
- How many more people are needed for the offer to be applicable
There are convenient social network links to share the offer online via Facebook Like, Twitter, email, and referrals.
Below the offer is usually a company profile and terms and conditions and often as well as a blog post and/or user comments.
You are also given the opportunity to buy the offer and gift it to a friend. Once the offer has reached capacity, you will be charged for the deal and then you will be able to print the offer from your account page and take it to the merchant for redemption.
Your account page allows you to manage your purchased Groupons and view pending ones. You can also view received gifts, view and update your account information, update your profile and billing information, as well as follow merchants that you have purchased Groupons from.
2. Local Savings and Daily Deals
A new offer is posted each day!
Users can become members by signing up on the Groupon.com site to receive Daily Deals offered in their area directly to their email. Users can also become members by linking and logging in on their Facebook account to Groupon.
Members are not limited to their area. If a member in the Boston area is traveling to New York and wants to take advantage of an offer in the New York area, all the member needs to do is select New York (or any other area) from the drop down box on the Groupon.com site and select the offer.
Often offers are not just limited to that particular day. Offers may be available for any preset time frame and may be purchased up until that date.
3. Gift a Groupon
Groupons make great gifts!
If you’re looking for an inexpensive and great gift idea, why not give the gift of local adventure to friends, family or anybody who needs to get out more? You’ll be giving presents worth twice what you paid, and without going shopping or paying shipping costs.
“Groupiconius” is more of a Groupon webstore where offers are available for a longer time and allow users to redeem gift cards for an item they may want that is available beyond the Daily Deal.
The Groupiconius page displays several offers, what they cost, what they are valued at, how much longer the offer is available for (unless it will become available and when) and more information about the offer similar to OpenLaszlo’s article on Wix promo codes. This gives users the opportunity to select an offer they are interested in or wait until one becomes available.
4. Affiliate Program
Refer a Friend, Earn $10 Groupon Bucks 🙂
I Love GrouponAs an added bonus to entice users to participate and purchase an offer, registered members can get $10 Groupon Bucks every time someone buys their first Groupon within 72 hours of clicking their widget or banner.
Widgets are interactive badges that can be placed on a member’s website, blog, forum, or sent via email. Groupon offers members customizable codes that can be easily integrated into the member’s site.
Banners are images that link the user to the page on the Groupon Deal of the Day or local offer and can also be placed on websites, blogs and forums.
Groupon Bucks can be used toward any Groupon purchase, and they never expire. There’s no limit to how much one can earn!
5. Mobile Apps
Android or iPhone take Groupon with you on your mobile device
Do you have a web-enabled smart phone? Now you can purchase, manage, and redeem Groupons directly from your mobile device. Whether you have an Android, iPhone, or even a Motorola SUN1660BB, you can take advantage of Groupon’s mobile apps. Each mobile app is free and available either through the Android Market or iTunes web store. Get any deal with the touch of a button, keep track of your Groupons by location, date and expiration, and redeem them any time you want without killing trees.
- Browse unbeatable deals on local adventures
- Get any deal with the touch of a button
- Search nearby Groupons using GPS
- Keep track of all your Groupons by location, date and expiration
- Save trees with paperless redemption
What is Groupon?
Each day, Groupon features an unbeatable deal on the best stuff to do, see, eat, and buy in your city. By promising businesses a minimum number of customers, we get discounts you won’t find anywhere else. We call it “collective buying power!”
Do I have to sign up a group of people I know to get the deal?
Nope – our millions of members make up a big enough group. You’ll probably want to invite people anyway, though – Groupons are fun to use with friends, grandparents, and men who wear monocles.
I like today’s deal – how do I get it?
Just click “BUY” before the offer ends at midnight. If the minimum number of people sign up, we’ll charge your card and send you a link to print your Groupon. If not enough people join, no one gets it (and you won’t be charged), so invite your friends to make sure you get the deal!
What happens if the Groupon doesn’t reach its required minimum number of purchasers?
If not enough people sign up, then the deal is canceled, and you won’t be charged. Better luck next time! So if you really want the Groupon, be sure to either beg or threaten your friends.
Do I need to use my Groupon the same day I buy it?
No. Many Groupons have an expiration date, but you never have to use them on the date of purchase.
Bought a Groupon – how do I use it?
Once you’re charged, you’ll receive an email with a link to sign in and print your Groupon. The Groupon has redemption instructions and a map right on it!
Can I buy a Groupon as a gift for someone else?
Yes. We communicate with all the businesses that we work with that Groupons can be gifted, and unless the Fine Print specifically states otherwise, gift away! To have us send them the gift, select the gift option at checkout.
Wait, my name is on the Groupon. Are you sure I can use this as a gift?
If I don’t use the full value of the Groupon in one visit, can I use the remainder later?
No. Unless otherwise stated you do not receive store credit or cash back for whatever you don’t use. Bring a friend – share a little!
Can I combine my Groupon with other offers or specials?
No… not unless the Groupon specifically states otherwise.
Am I billed as soon as I join a Groupon?
No – you are only charged if the Groupon reaches the required minimum.
Is Groupon safe?
Yes, extremely safe. Your credit card number is transmitted by SSL directly to a secure electronic vault. At no time is your credit card information stored on our servers.
What happens if my Groupon expires?
All is not lost! Once a Groupon reaches its expiration date, it loses its promotional value, but you can still redeem it at the price you paid for the length of time stated by gift certificate laws in your state.