"The killer was email address acquisition... We converted approximately
25% of in store redemptions into signing up for our email list...
which is on track to generate an additional five to six figures in
online revenue."American Apparel Source, Business Insider
Not only have we sold hundreds of Groupons, but the offers are being redeemed by qualified new customers.Dana Thayer, Chelsea Piers
Groupon
is a win-win situation because I get cash and new customers. At the end
of the day, I can look at my profit numbers and see exactly what I got
out of it. Groupon is great. I’m definitely doing it again. Natalie Woods, Daisy Clover Boutique
Published on April 2010
Power in Numbers: Groupon.com helps salons attract new clients and customers find discounted services
Part concierge and part discounter, the site groupon.com is a win-win service for salons that want to attract new clients and customers looking for a deal. Groupon offers one daily discount-- typically 50 to 70 percent off-- in each of its more than 30 city locations that becomes valid once a certain number of people sigh up. Deals are announced each day via e-mail to Groupon's more than 2.2 million members, through Twitter and Facebook and on the Web site's location-based home pages.
Businesses that wish to participate can work with Groupon to determine the discount and minimum number of sales. Customers pay Groupon directly for the deal, and Groupon takes a percentage (typically 50 percent) while giving the remainder to the business. WHile a small number of deals don't reach their minimum number of purchases, the vast majority are scooped up quickly. In January, a $25 Groupon for $50 worth of services at Andre Chreky salon in Washington, D.C., met its minimum 100 sales at 7:33 a.m., and topped out at 2,222 by midnight.
"One of the reasons Groupon has been successful is because it guarantees a certain number of paying customers," says Groupon's Mark Desky. "We've helped salons grow specific services like massage or manicures and pedicures." On average, Desky says that Groupon userts spend 60 percent more than the value of the Groupon, and businesses report fuller appointment books after participating. By year's end, Groupon plans to expand to 80 cities.
