Groupons are everywhere. Food, travel, cosmetics, recreation and other establishments are running Groupon deals left and right.
So are these establishments getting their money’s worth, meeting their expectations and growing their businesses through these deals?
No information is available regarding repeat business customers so a small survey has been conducted to pulse the small business participants that have actually tried using it once. It appears their motivation to join was driven by curiosity. If that’s the case, Groupon’s market growth can not be sustained with it.
There are 16 confirmed responses from business owners who have offered Groupon deals. Although the number is not a broad sample size, it still offers an insight of how these small companies view the program.
The results in broad strokes:
- Although 60% of the respondents said their trials were successful, more than half do not want to run another deal again.
- 40% reported failure
- Groupon is not necessarily a better strategy compared to its competitors
- Most respondents said “only a handful” became repeat customers
- About half of those surveyed would not recommend Groupon to another small business.