Case Studies: Groupon & Foursquare for Businesses

Last month, we learned how Groupon is beneficial for businesses. Today, let’s take a look at some real life examples of how Groupon and Foursquare can be used to bring in new customers:


Cafe 50’s Uses Groupon
The concept of discounted dining is not new. Restaurant.com has been around for much longer than Groupon but it lacks a social and “cool” aspect of Groupon deals.

This weekend, I ate at Café 50’s for the first time after seeing a Groupon. This kitschy 50’s themed eatery has fairly good Yelp reviews and two locations in Los Angeles. After a yummy breakfast, the owner thanked us for coming and told us how much he loved Groupon because it was bringing him in so much business. How much exactly? He revealed that within 24 hours, nearly 4,000 people had purchased a Groupon! That number is pretty amazing to me for a local business. It’s also the kind of restaurant that is good for groups and families so I’m sure that they’ll be looking forward to more customers through word of mouth and online reviews.


Checking into Dodger Stadium with Foursquare
This weekend was full of new things as I checked into Dodger Stadium for the first time using Foursquare. I even earned a “swarm badge”, which means that I checked into a venue where 50+ others have also checked in. Foursquare badges and mayorships provide customers with a fun way to show their loyalty and encourage them to explore new venues. I also saw that fans checking in using Foursquare could also save 25% on their next visit! Groupons and Foursquare is great for restaurants, retailers and venues because they provide incentive. It’s a new way to invite people who wouldn’t normally visit your business.

Of course, there are downsides to Groupon and Foursquare if businesses believe that they could lose money (especially for service provides or small businesses who are not equipped to handle the volume). If your business is interested in Foursquare or Groupon, make sure to read the conditions carefully.

Social Media Tips Learned from Groupon

One aspect of a group + one aspect of a coupon = Groupon. So, have you used it yet?

It Pays to be Social
As we all know, social media advertising depends effective communication. Did you know you can log onto Groupon through Facebook and not have to create a new account? It pays to be social and make things easy for customers.
When Groupon first started, a local daily deal would need a certain number of buyers in order for it to be valid. For example, 500 people needed to score a dozen cupcakes at a bakery for 75% off. People would pass this Groupon to their friends and family via social media or email. Nowadays, so many people use Groupon that I rarely see a deal that hasn’t met its buyer requirement. Nonetheless, it’s still fun to pass on great deals.

Who Doesn’t Love a Great Deal?

Whether you’re a serious shopaholic or frugal foodie, Groupon is a great way to find deals throughout your city. It’s a fun way to try restaurants you’re skeptical about and they also make great gifts. Most recently, a national retailer gave Groupon a try. GAP offered $50 worth of apparel for $25 and over 200,000 people jumped on the deal. That’s 10 sales per second! What’s the lesson learned here? Offer good deals and the customers will come.

People Love Good Customer Service

I recently saw a deal for Mr. Cecil’s California Ribs: $30 of BBQ for $15 – doesn’t seem so bad. I checked out their reviews on Yelp and saw some less than flattering reviews. When so many people are going to be doing their research on your business, you’d better be prepared. I saw that a manager at Mr. Cecil’s was personally responding to negative reviews and offering customers a gift certificate so that they would try the restaurant again. Lesson: learn from your mistakes and offer superb customer service.

Have you learned anything else from Groupon? If your business is interested in giving Groupon a go, it’s a great way to bring in new locals.