Will Groupon Really Boost Your Local Business?

Groupon, the group shopping or social coupon business, might or might not increase near term profits for a business that uses it. Offers are designed to get people "in the door" who might not have shopped at a particular establishment before.

Groupon gets people into your shop, but it doesn’t keep them there, necessarily. Also, a retailer has to weigh the higher traffic with the reduced gross margins a discount implies. All of that means a Groupon campaign will boost revenue, but not profit, in the near term.

The best feature of a Groupon experience is the exposure. It will boost your website, blog and social media traffic, which will lead to more signups, likes and follows. This is what you’re paying for when you’re running a Groupon.

Will Groupon Really Boost Your Local Business? | Social Media Examiner