Groupon use Facebook and Twitter as one of its powerful marketing method, as its advertising video, once a consumer use Facebook, Twitter or email to invite one friend to join the deal, the consumer will be rewarded, and as the number of people he/she could invite to join the group purchase, his/her reward will be multiplied, this create an incentive for consumer to help Groupon to spread or say, advertise deals it provided. Specifically, Groupon will give you $10 in “Groupon Bucks” for each friend you refer when they make their first purchase – when you sign in Groupon website, for each deal you can get a personalized referral link using the tools on the website, so when your friends clicks that link, Groupon will know you sent them. If someone joins that deal within 72 hours after clicking your link, Groupon will add C$10 Groupon Bucks to your account and these Groupon Bucks can be used toward any Groupon purchase, and they never expire.
From consumers’ view, it is very attractive to sharing the information, and with the power of Facebook and Twitter, it is also very convenient to share the information with friends; from Groupon’s view, this rewarding mechanism means that the cost of get a new customers is only $10.
What an excellent deal!