Why is Groupon not popular anymore?
Groupon’s business model relied heavily on offering deep discounts to attract customers, which did not result in long-term customer loyalty for the merchants. Many businesses complained that the deals were not profitable and did not lead to repeat customers. Unlike a standard coupon, a groupon lets consumers pay the discounted price for goods in advance by purchasing the deal. The average groupon grants a 15% to 30% discount, but it can be as high as 90%.For example, if you refer a friend to Groupon and they make a purchase, you’ll get $10 Groupon Bucks. We also send out offers to select groups of our best customers from time to time which include offers for Groupon Bucks.
Why is Groupon so much cheaper?
The deals offered daily through Groupon start at 50 percent off and can go as high as 90 percent cheaper than the normal price. Groupon can offer such steep discounts because it guarantees business owners a minimum return on their investment and the possibility of becoming an overnight sensation. Many local businesses offer discount vouchers and coupons for their goods and services. Groupon finds these deals, negotiates with the businesses, and makes the offers available for consumers on an online platform.