A word on Groupon
Oct 01, 2011 | Written by Anupa Mueller
We ran a Groupon Deal-of-the-Day from May to September which offered customers $14 worth of food/loose leaf tea for $7. Customers may not know that the merchant establishment offering the deal usually gets 50% of the purchase price - in our case, approx. $3.50. So you have to be careful in constructing the deal because we would be offering $14 worth of food/tea for $3.50. Understandably, we were concerned. Would they all come at once? Would we see new customers? Would they spend more than the $14? Would they be irritated that take-out was not included? I'm happy to report that it went better than expected in most ways. A few things surprised us. We thought this was a young person's game but 42% of our purchasers were over 50 years old. 32% were between 36-50 years. 82% were female. Not surprisingly most came within a 25 mile area radius. We sold over 600 Groupons in one day and we stayed at a 25 - 30% redemption for a while and, exactly as Groupon had alerted us, saw a significant spike in redemptions in the last 2 weeks. September is typically a slow month for us. People go back to school and work after a summer of activity and spending. An increase in customers was ncluded in our planning. We are now at a 60% redemption. No question Groupon resulted in new customers. As recently as Thursday, a couple came for the first time. They live in Rockland County but work a couple of towns south of us in Westchester. They said this was one of the best experiences in their life, that they loved tea, that this was something they would repeat. They not only enjoyed their meal but bought Tropicana tea on their way out and took a Chocolate Truffle for their son. All in all, we would run a Groupon deal again, just not in our busy season. We would probably change a couple of things next time around. Look for it again next summer. And thanks to all our Groupon customers, new faces and regulars.