Group buying, also known as daily deals, social buying, or collective buying, has come to represent the collective bargaining power individuals can leverage to get great daily deals on products and services when they recruit other consumers to purchase too. These locally based, 50% off daily deals are promoted to the group buying site’s email subscribers and require that a minimum number of purchases are met to secure each deal. If the minimum is not met, then the buyers’ credit cards are not charged and no one gets the deal. In combination with the limited offering time for each deal, it encourages buyers to share the deal through social media channels like Facebook and Twitter. Extra incentives for users to buy and promote local deals include reward points for each new sign-up the user attains and free deal vouchers.
When an individual purchases a deal they are simply paying for a coupon voucher that’s delivered to them via download or email. They must take that voucher to the merchant in order to redeem it for the goods or services that it represents. Most deal vouchers are sold for 50% of their value thereby offering incredible savings for consumers. For example, a group buying site might offer $20 worth of food at a local restaurant for only $10. While these huge discounts are costly to business owners it puts their business in front of hundreds to thousands of new customers that can sample their products and services. Merchants are essentially getting free advertising in hopes of converting one-time deal buyers into long term customers.
Daily deal sites – Contains a review list of nearly 100 group buying websites that’s continuously updated to include the newest daily deal sites as they launch. The best group buying sites include a short summary about their features, limitations, and how they differ from their competitors. Given the number of sites listed, you should be able to easily find a collective buying site that caters to your local area or city without any problems.
Compare group buying sites – A comparison chart of all group buying websites that have been launched to date. Allows you to filter and sort through all the group buying sites by the features each one provides to quickly identify the sites you may be interested in joining. Visitors can discover which collective buying sites offer reward points for sharing deals as well as whether or not a site gives charitable contributions as a percentage of their sales.
Group buying guide – Provides group buying definition explaining how collective buying works, tips on how to use Groupon and other daily deal sites to obtain great discounts on local merchant products and services. Includes lots of group buying FAQs for both consumers and business owners. It explains things like why merchants are willing to utilize this form of marketing for their business and common questions related to deal vouchers.
Getting the most from daily deals – Offers useful advice on when you should and shouldn’t buy Groupons. It discusses how to identify great group deals, researching the merchant that’s offering the deal, and using the group buying website to your advantage. Make sure you give it a good read before you start gobbling up every deal that’s sent to you inbox.
Group buying business model – This article discusses Groupon versus other online group buying competitors and group buying business models that may emerge to compete with it. It touches on Groupon’s weaknesses and whether or not Groupon hurts the local economy. Other talking points include the potential evolution of online group buying platforms and merchant cooperative efforts to develop a non-profit group buying solution that does more to help locally owned businesses.
Group buying costs for businesses – Examines the costs and effectiveness involved in using group buying deal sites to promote your business and acquire new customers. It poses the question of whether it’s more beneficial to offer your own 50% off sale through online advertisements served by Google AdSense given the high fees Groupon charges. We also display graphs based on real sales calculations and discuss the reasoning behind why it’s not cost effective for a business to sell vouchers worth more than ~$20.
Group buying calculator – Here we’ve gathered real Groupon data to make voucher sales estimates and deal cost projections for business owners. This article further analyzes the customer acquisition costs for businesses that utilize group buying sites and we integrate that information into an extremely uselful tool called the Groupon calculator. The Groupon calculator lets the business owner plug-in the value and cost of a voucher, how many vouchers he/she hopes to sell, the percentage of vouchers redeemed before the expiration date, and other important variables to get a valuable prediction of the potential cash flow, profits, and expenses the business will incur by offering such a deal.
Facebook’s Groupon killer – Despite the cliché, Facebook possesses key advantages over Groupon which could help it become Groupon’s top rival in the near future. One such advantage is that Facebook is Groupon’s top referreral source for web traffic. It’s where buyers share deals with friends and encourage them to buy deals too. The integration of a Facebook group buying platform or application that not only generates sales but subscribers through “Likes” for business owners represents another strategic great advantage for Facebook. In this article we additionally consider the lower operating costs of a Facebook application that promotes daily deals to local consumers versus Groupon’s current business model.
Group buying on Facebook games – Discusses the adoption of group buying by social gaming giant Zynga as it tests the new sales model on its popular Facebook game YoVille. This article includes the examination of the Zynga group buying platform and the potential for its new promotional tool to generate additional earnings for the company. Here we also calculate exactly how much revenue the group buying offers may be bringing in for Zynga as well as the effect on the company’s valuation.
Twitter adds daily deals – An in-depth look at Twitter’s announcement and integration of the group buying business model as a source of revenue for the microblogging service. This covers an evaluation of how Twitter may use the @Earlybird account to serve time-sensitive, category based deals to well targeted consumers. We also consider the challenges Twitter has compared to Groupon, whether Twitter is a Groupon killer, and the potential income Earlybird could generate for Twitter.
Twitter daily deals fails to impress – An assessment of Twitter’s first few daily deal offerings through @Earlybird and the lack of killer discounts they provide. We identified that consumers can obtain nearly the same savings on products that Twitter was promoting as deals simply by searching discount sites like Amazon and Walmart. This post additionally provides evidence that suggests Twitter’s Earlybird follower rate dropped after these lackluster deals were offered to subscribers.
Groupon reseller marketplaces – A review list of the top coupon marketplaces for buying and selling your Groupons. This is in response to the emergence of a group coupon reseller marketplace where individuals can buy and sell deal vouchers. There we compare coupon marketplaces, how they differ, their features, and the challenges each may face.
Groupon versus coupon reseller sites – This article describes the potential for daily deal reseller sites to become the center of group coupon discovery. It explains that as more daily deal sites launch, and social buying spreads to more publishers, consumers will gravitate towards a coupon marketplace to obtain deal vouchers at lower prices. We also examine how the reselling and repurchasing of vouchers extends the availability of deals leading to a decline in the urgency and exclusivity of a given deal to Groupon’s detriment. Other negative impacts that could potentially be manifested by deal resellers and affect Groupon or its clients include an increase in voucher fraud, dilution of the merchant’s brand, higher coupon redemption rates, and lost email subscribers.
Business Owner Tips For Daily Deal Sites – Contains helpful advise and tips for business owners that are considering using daily deal websites as a promotional tool. If small business owners don’t take the time to prepare for such a marketing campaign, sites like Groupon can do more harm then good. The article not only touches on the expenses involved in offering deals, but how to get the most out of the experience and how to convert deal crazed consumers into long-term repeat customers.