Groupon stands for “Group Coupon.”
Groupon is a company with a mission “…to become the world’s commerce operating system. By connecting buyers and sellers through price and discovery, we have the opportunity to become one of the world’s essential companies, a daily habit for our customers and merchant partners.”
By making it possible for businesses to offer discounted gift certificates to groups of potential customers, Groupon gives retailers the ability to provide great deals (but only at a large quantity of customers), and also allows businesses to promote themselves to the general public. In many situations, partaking in a Groupon can be a win-win scenario for both retailers as well as for Groupon itself. When a customer purchases a Groupon, the retailer earns half of the money the customer pays and Groupon keeps the other half.
Here’s an example: If a soft serve ice cream retailer wants to showcase new frozen yogurt machines or frozen beverage equipment by offering a deal through Groupon, the retailer may offer a $5.00 bowl of soft serve or a frozen beverage for $2.50. When a customer purchases the Groupon, the $2.50 would be split equally between the retailer and Groupon. In other words, the retailer would receive $1.25 and Groupon would receive $1.25 – and the lucky customer would receive $5.00 worth of frozen yogurt when he or she redeems the Groupon at the soft serve shop.
Even though it might not seem to be profitable for a retailer to feature a new soft serve machine by offering $5.00 worth of ice cream for $1.25, Groupon serves purposes in addition to simply boosting a retailer’s revenue.
Reasons to Consider Utilizing Groupon to Showcase Your New Frozen Yogurt Equipment and Frozen Beverage Dispenser:
1. The Groupon method allows a soft serve ice cream and/or frozen beverage retailer to offer a discount, or a “deal,” on short notice.
2. A successful Groupon deal generally attracts a lot of new customers who might not otherwise know about a shop’s new frozen yogurt equipment or new soft serve machines.
4. Even if potential customers do not purchase a retailer’s Groupon, they are likely to see the deal when they look at Groupon to see what’s available. This encourages brand recognition.
5. If a retailer is interested in promoting drinks made on state-of-the-art frozen beverage equipment, offering a Groupon will help.
Keep in mind that a Groupon can be extremely popular, and it may generate a lot of traffic into a soft serve ice cream shop. However, this type of promotion is not always profitable, mainly because a Groupon doesn’t always result in repeat customers.
Have you tried Groupon or a similar website to promote your new frozen yogurt or soft serve equipment or frozen beverage dispenser? Would you recommend this type of group coupon or promotion to other retailers? Let us hear from you!