Oh Groupon…

…I really do love thee.

I’m sure most of the younger population and general tech savvy people have heard of Groupon and all the other group buying coupon websites (such as Living Social and Team Buy). For those who have never heard of this company though, Groupon’s premise is simple: they offer daily deals that let you save anywhere from 50-90% off a certain company’s goods. You pay upfront for the deal, say $15 for $30 worth of food at a restaurant, and then you redeem your voucher later on. It’s money saving at it’s best, but what really makes Groupon and other coupon sites so popular with both the consumers and local businesses?

At the heart of it all, Groupon acts just like a regular coupon or sale. Consumers are attracted to saving money and they buy the deal, thus saving money. What the businesses hope is that after the consumers redeem their vouchers, they will become loyal customers, or at the very least, like the product/service enough to keep the company in the back of their mind. It helps that once a deal is “tipped”, or once enough people buy the deal, the money is charged regardless of whether they redeem the deal or not. This “tipping” mechanism helps to ensure that the business will have a guaranteed amount of coupons bought.

One major difference between Groupon and normal coupons is the fact that there is a time limit; you usually only have one day to buy the coupon of the day. This sense of urgency helps to push people into buying the deal and redeeming it since they spent money already, as opposed to someone receiving a coupon in the mail and just keeping it in the wallet until they think of the company. Furthermore, Groupon is an online e-commerce site, with an Iphone app and Android app. For today’s tech savvy population, instant gratification is key, the faster people can have access to deals, the more likely they will use it. Think, when was the last time you took the effort to clip out a newspaper coupon and redeem it in store?

I personally love this site, it has helped me find the most amazing restaurants around town. Just recently, I redeemed a voucher for brunch at La Brasserie and it has become one of my favourite places to eat at. Even though I have been meaning to visit this restaurant for a while, without Groupon, I would have never had extra “push” to eat at this place, and I would have never become an advocate of it.
As of result: I win, La Brasserie wins and Groupon wins.