Groupon Founder Talks About Success and Growth
This week’s guest on the Duct Tape Marketing Podcast is Groupon founder Andrew Mason. Groupon is a very unique service that allows individuals to collectively buy discounted, local products and services as long an enough people do it.
The way it works is that people sign up in their community to receive daily updates offering them the ability to buy a deeply discounted local product or service. The hyper-local deal of the day offering points the spotlight on businesses like a city guide with the trick of getting people to go out and experience their community.
Groupon has experienced tremendous success for several reasons. One local business only, enough people have to buy or get their friends to sign-up, and they have to pay for the coupon. So the business may get several hundred new paying customers to try their business. We all know that if you get someone in the door, there’s a great chance they turn into long term buyers. The fact that people pay money to try your business makes them a better prospect because them use the Groupon and then buy a nice bottle of wine.
In just 15 months over 3 million people have signed on, 180 employees now work at Groupon and millions of dollars are being saved and generated in the current list of 30 cities now served (project 80 by end of 2010.) Groupon takes a small piece of each Groupon sold and sends the business owner a check for the entire purchase.
Mason attributes tremendous word or mouth driven by the act of saving, viral social content, such as dining out, and the natural incentive to share so the deals tip.
Businesses are researched to insure faithful participation. Business owners can sign-up or simply learn more at Groupon Works.