Groupon

What is Groupon

Groupon is an e-commerce marketplace that connects subscribers with local merchants by offering activities, travel, goods, and services at a discount. The company was founded in 2008 by Andrew Mason and has its headquarters in Chicago, Illinois. The core purpose of Groupon is to help people discover new and interesting things to do in their city while saving money. For businesses, it serves as a marketing tool to attract new customers. Users can browse the website or mobile app for deals on everything from restaurants and spa treatments to live events and vacation packages.

Groupon Features

Groupon offers several features to help users find and enjoy great deals.

• Local Deals: This is the core feature. It provides a wide range of discounted vouchers for local businesses, including restaurants, beauty salons, fitness classes, and entertainment venues.
• Groupon Goods: A marketplace for physical products. Users can buy discounted merchandise like electronics, home goods, apparel, and more, which are shipped directly to them.
• Groupon Getaways: This section offers curated travel deals. It includes discounted hotel stays, vacation packages, and tours in destinations around the world.
• GrouponLive: In partnership with Live Nation, this feature provides deals on tickets for concerts, sports games, theater shows, and other live events.
• Mobile App: A dedicated app for iOS and Android devices allows users to browse, buy, and redeem deals directly from their phone. It makes the process convenient and paperless.
• Cash Back Deals (Groupon+): Users can link their credit or debit card to their Groupon account and automatically earn cash back at participating restaurants and businesses without needing a voucher.
• Booking Tool: For some services like beauty appointments or classes, users can book their time slot directly through the Groupon platform after purchasing the deal.

Groupon Pricing Plans

For consumers, using Groupon to browse and purchase deals is completely free. There is no cost to create an account or access the marketplace.

Groupon also offers a subscription service called Groupon Select. For a monthly fee, members get access to extra discounts on local deals, exclusive offers, and free shipping on many Groupon Goods items.

For merchants, Groupon operates on a performance-based model. Businesses do not pay an upfront fee to be featured. Instead, Groupon takes a percentage of the revenue generated from the deals sold through its platform.

Groupon Free Plan

Groupon is fundamentally a free service for consumers. Anyone can sign up for a free account to browse, purchase, and redeem deals. The free access includes all main categories like Local Deals, Goods, and Getaways. There are no limitations on the number of deals you can browse or purchase with a standard free account.

How to use Groupon

Getting started with Groupon is a simple process.

1. Create an Account: Go to the Groupon website or download the mobile app and sign up using your email address.
2. Set Your Location: Groupon will ask for your location to show you relevant deals in your area. You can change the city at any time to explore deals elsewhere.
3. Browse for Deals: Explore different categories such as 'Food & Drink', 'Things To Do', 'Beauty & Spas', or 'Health & Fitness'. You can also use the search bar to look for specific businesses or services.
4. Select and Purchase a Deal: Once you find a deal you like, click on it to read the details and the fine print. The fine print contains important information like expiration dates and any restrictions. If you are happy with the terms, click 'Buy' and complete the payment process.
5. Redeem Your Voucher: After purchase, the voucher will be available in your Groupon account under 'My Groupons'. To redeem it, you can either print the voucher or present it to the merchant on your phone using the Groupon app.

Pros and Cons of Groupon

Pros:

• Significant Savings: Users can find deals with discounts of 50% or more on a variety of services and products.
• Discover Local Businesses: It is a great way to try new restaurants, spas, and activities in your city that you might not have known about.
• Wide Variety: Groupon offers a vast selection of deals, from dining and travel to retail goods and event tickets.
• User-Friendly App: The mobile app is easy to navigate, making it simple to find and redeem deals on the go.

Cons:

• Restrictive Fine Print: Deals often come with specific terms, such as being valid only on certain days or having a short expiration date.
• Booking Challenges: For popular deals, it can sometimes be difficult to schedule an appointment with the merchant.
• Impulse Purchases: The deep discounts can encourage users to buy things they do not really need.
• Customer Service Issues: Resolving problems with a deal or a merchant can sometimes be a slow process.

Groupon integrations

Groupon is a consumer-facing platform and does not offer direct integrations with productivity software like Salesforce or Outlook. Its system is designed for individual users to purchase deals and for merchants to manage their campaigns through a dedicated merchant portal. The platform's primary connections are with payment processors and affiliate network platforms.

Groupon Alternatives

• LivingSocial: Very similar to Groupon, offering a wide range of local deals on activities, dining, and services. In many regions, Groupon and LivingSocial are owned by the same company and may feature overlapping deals.
• RetailMeNot: Focuses more on providing coupon codes, promo codes, and cash back offers for online and in-store retailers rather than pre-paid vouchers for local services.
• Honey: A popular browser extension that automatically finds and applies coupon codes at checkout when you shop online. Its main goal is to save money on e-commerce sites, not local experiences.
• Rakuten: A service that gives users cash back for shopping at their favorite online stores. Users click through the Rakuten portal before making a purchase to earn a percentage of their spending back.

Groupon API

Yes, Groupon provides a public API for developers and partners. The Groupon API allows developers to access the platform's vast inventory of deals, including information on price, location, and deal specifics. This is useful for building applications, websites, or services that feature local deals.

To get access, developers typically need to register on the Groupon Developer Portal and request an API key. The process is usually free for development and non-commercial use. After registration, you will receive a unique API key to authenticate your requests.

Example API Call (Conceptual):

An API request to find deals in a specific area might look like this:

GET https://api.groupon.com/v2/deals?division_id=chicago&client_id=YOUR_API_KEY

This would return a JSON object containing a list of active deals in the Chicago area.

Groupon Affiliate program

Groupon has a robust affiliate program that allows partners to earn commissions by promoting Groupon deals. It is managed through major affiliate networks like CJ Affiliate and Rakuten Advertising.

• Commission Rates: Affiliates earn a commission for every sale generated through their unique affiliate links. The rates vary depending on the category of the deal (e.g., Local, Getaways, Goods) but are typically a percentage of the sale price.
• How to Join: To join, you must apply through one of the affiliate networks that manage the Groupon program. You will need to have a website or platform where you plan to promote the deals. Once your application is approved, you get access to tracking links, banners, and other promotional materials.
• Getting Paid: Commissions are tracked by the affiliate network. Payments are typically made on a monthly basis once you reach a minimum payout threshold, and you can receive your earnings via direct deposit or check.