Groupon reaches people that you couldn't normally reach. It's like having captive consumers.Christine LaPausky, D'ames Day Spa
There is clearly no other program that creates this brand awareness,
with a positive direct effect to my bottom line. Groupon far out-weighs any other advertising or free
advertising program out there.
Bill Raupp, San Diego Desserts
We sold more than expected, and the exposure to others who didn't buy has been good as well. We were able to upgrade many services so far and gain a good number of regular customers.Derek Sanders, EcoMaids
Published on 09/17/2010 by Valerie Chinn
In a down economy, businesses are looking for any way to get new customers. Now local stores and restaurants are turning to online coupons to get their names out and save customers money at the same time.
Groupon launched in Louisville in February and has nearly 100,000, increasing by five hundred a day.
Pounds of butter, barrels of confectioner's sugar, and loads of sprinkles make for a sweet job at Gigi's Cupcakes. Amanda Dahl, the store manager says, "They're very large, piled high with icing, just beautiful."
The store on South Hurstbourne Parkway opened last November, but like other small businesses it has had a hard time getting its name out there. So to mix things up, it turned to an online coupon called Groupon that offers deals of the day. Gigi's sold six cupcakes for half-off, $9 instead of $18.
Dahl says "Groupon gave us new customers right off the bat." She says the following day, the store had a huge rush of people.
Gigi's says since its Groupon over the summer, business has increased about 22%, selling almost 1700 Groupons. Ramsi's Cafe for half-off Friday sold out at 2,000 Groupons. But Groupon says its top deal was a car wash that sold 2500.
LivingSocial, a similar type of website and online coupon, started its Louisville program in July. LivingSocial says Gigi's sold about one thousand cupcakes on its site.
Dahl says, "That was also effective for us, also did six pack of cupcakes. Definite increase in business after that as well."
Customers say they are always looking for deals and ways to save money in this down economy. They say e-mail deals are the way to go. Chip Evans says, "I just watch what they offer and get something we could use, we buy those for sure."
So whether you want Tiger Tails or Miss Princess cupcakes, Gigi's Cupcakes says it's just happy it's found a way to spread the word about its sweet concoctions. Dahl says, "We are going to do Groupon again, a steady two times a year Groupon." She says the next one will come out close to the holidays.
LivingSocial says it has 85 million customers worldwide.
