Groupon Offers Customizable Deals To Attract More Merchants

When Groupon first launched in 2008, it helped define the daily deal space and inspired legions of loyal followers. Providing discounts on restaurants, spa services and more, Groupon has become a go-to destination for bargain hunters on the web.

Today, Groupon is focusing on refining and growing its merchant business to help build relationships with businesses of all sizes, as well as extend products and brands to consumers worldwide.

“Groupon is reinventing the traditional small business world by providing merchants with a suite of products and services,” said Darren Schwartz, SVP of Sales for Groupon, in an interview with Retail TouchPoints. Merchants now have access to customizable deals, payments processing capabilities and POS solutions “to help them attract more customers and run their operations more effectively.” 


Merchants also can feature products and services on Groupon continuously, rather than running a deal for a limited period of time, according to Schwartz. “Once they reach a monthly limit, which they determine, they go off the site until the next month.”

Schwartz added that the aforementioned feature has “transformed Groupon into the leading marketplace for online deals, where consumers can find anything, anywhere, anytime.” The new, more flexible deal option has been popular with Groupon merchant partners, Schwartz reported. In June 2013, more than 75% of merchant contracts signed in the U.S. opted to feature in the Groupon marketplace via a monthly, recurring deal. 

Helping Merchants Maximize Deals

To date, Groupon has established valuable partnerships with more than 500,000 merchants worldwide, and more than half of them continue to be repeat customers, according to Schwartz.

To ensure businesses of all sizes have a valuable experience with Groupon, Schwartz shared the following best practices, developed from internal research and client success stories:

  • Schedule daily deal timing based on business needs and seasonality;
  • Estimate and understand a promotion’s impact on profitability;
  • Prepare staff to focus on customer service by looking for upsell opportunities as consumers redeem Groupons;
  • Encourage repeat visits by promoting a customer loyalty program; and
  • Always track offer redemption and measure success.

In addition to offering these best practices, Groupon is focused on creating a seamless and enjoyable browsing and buying journey, making the investment in daily deals more profitable for merchants.

“We’re always looking for new ways to surprise and delight our customers and help merchants grow their businesses,” Schwartz noted. However, because the daily deal space is constantly evolving, “we’re intensely focused on perfecting both the customer and merchant experience, as well as expanding our marketplace.”

Consumers’ browsing experience on Groupon is tailored to their individual preferences. For example, shoppers can decide to only have fitness and beauty deals appear on their feeds. “That way, each deal will be prominently featured to customers who are more likely to purchase it, Schwartz said. He added that the Groupon mobile app also drives engagement and sales for merchants: In June 2013, nearly half of Groupon transactions in the U.S. were completed on mobile devices, and mobile consumers spend approximately 50% more than web-only customers.

“Businesses can reach more customers via mobile by working with Groupon because the platform fits right in with our mission to make it easy for people around the world to search and discover great businesses at unbeatable prices,” Schwartz said. “Our Groupon mobile app is the tool that fosters discovery, is seamless and easy to use and is a powerful reflection of what’s available to consumers in their local communities.”

Featured Event

Join the retail community as we come together for three days of strategic sessions, meaningful off-site networking events and interactive learning experiences.



Access The Media Kit


Access Our Editorial Calendar

If you are downloading this on behalf of a client, please provide the company name and website information below: