groupon or living social

Hey guys,
New to the board. Was wondering if any of you have tried group on or living social? How was your experience and would you do it again.

thanks

If you use the search function and put in groupon I think you will find the general feeling here is not one of admiration.

We have a blog post which may help you weigh the pros and cons for your pizzeria
http://www.burkecorp.com/blog/2011/02/group-buying-coupons/

If you search the posts, you will see my thoughts on my Groupon experience. I diverge from the crowd and thought Groupon had value. There are definitely some cons and it depends on your business.

One thing Groupon could do to add value is to send a follow up survey to everyone that bought my Groupon.

Remember, Group Coupons are marketing dollars and you need to allocate them that way…

Stay away from Groupon unless you enjoy getting below grade customers. I let the quality of my food speak for itself. If you use CHEAP ingredients then you will have cheap customers, it’s that simple. Groupon does nothing to brand you.

Use some creative marketing. Example give your current customers some free extras when they spend money with you. I have noticed Pizzeria owners tend to be VERY CHEAP! when it comes their customers? Why is that.
I’d rather give 20 large FREE pizzas away to entice new customers. Food cost is food cost, and Groupon will not build loyal customers, it will however send a message to Cheap people who tend to NEVER be loyal to you pizzeria. All they want is a good deal, Sure you might get 1 out of 100 but there is no incentive to stay loyal when Groupon will most likely have your Competitors Pizza up for sale too.
GRoupon = WASTE I.M.O.

Think Long Term!! :smiley:

New to the community but I have read many of threads here in the think tank. After seeing this one had to register just to give my 2 cents!!

Groupon is great for the purchaser but is horrid for the business we did it about 6 months ago and our experience was the newbies that had never been to our establishment were there for one reason and one reason only to score some food at a discounted price. Most would order waters with lemon ( I hate that) and then make sure the ticket total was right at what the groupon would cover. They were cheap the other thing we experienced was regular customers that come in all the time and were using groupons.I for one will never do a groupon again or even any other thing like that if I am going to discount my food I’ll discount it instead of letting another company make money off of my discount.

This week alone I have had 5 different sales people contact me to be part of this type of “promotion”.
I have asked them if they happened to hear or read the report that the CBC (Canadian Broadcasting Corporation) did on these deals. Most of them just hang up at that point.

I have never used “groupon”, but I did use “livingsocial” once. I will not use it again myself. I actually use a local media adv. called “seize the deal”, they actually reimburse you a percentage, & the only reason I use it is because of the free advertising I get on about 3 local radio stations, it gets my name out their, I only use them no more than twice a year though, because I have seen a trend that the same customers buy them and the only time you see them in the store is with a coupon in their hand, yeah its good that they return, but you do get the ones that only spend the min. I also use a local tv news station once a year, they sell certificates for local businesses, & we actaully go in and do a small commercial of our business, & I actually pay nothing for that

I know this thread is a little old but I was reading the Technomic Consumer Food Trends Report and I thought everyone would be interested in these statistics:

[list][]48% of deal buyers reported using an online coupon at a restaurant they had not yet visited
[
]25% used it at a restaurant they had visited only once before
[]67% of these customers reported having returned to the restaurant without a daily deal
[
]83% said they recommended the restaurant to family and friends
[*]34% posted a review on a review site such as Zagat or Yelp[/list]

I know that there are many other considerations to use these sites or not but I thought these stats may help in some of your strategy.

If this helps, purely from a consumer’s perspective, I hate things like I see on restaurant.com with all of the annoying restrictions and also the fact that it is not truly a gift card or even credit. It’s normally something like a $25 credit for $10, but must spend $50 (just as an example). Got $200 worth for free and couldn’t even use them. Would never recommend or even bother looking at again. I have talked to people who don’t mind this but it bothers me.

I use livingsocial from time to time.,… Whole Foods just did $20 for $10. This is a no brainer if you shop there any way. Amazon did $20 for $10 also. There are usually no restrictions and it is not complicated to use. If your livingsocial deal was similar… straight forward with no restrictions (even if the deal is not as good…) then I think it would be successful.

Never used groupon.