3 Lessons from Groupon on Going Viral and Growing your Business

The online coupon idea is a win-win for both consumers and businesses. For consumers, discounts increase the Average Joe’s ability to buy fancy brands, and Joe can feel good about saving his hard-earned $ 4.43. On the flip side, digital coupons transition from an online interaction to an in-house sale of services or products.

But, at the mention of online deals, there’s one name that tops them all. That’s right, we’re talking about Groupon. Maybe it’s because they just raised a billion in funding? Okay just 950 million, but still. Maybe it’s because their subscriber list has grown 2,500% in the past year (Wowza!)? Or maybe they seem to be everywhere because they have a few tricks up their sleeve. We think they do, and you’re lucky because we’re ready to share.

Secret #1: Go local. Groupon connects local businesses with potential clients in their neighborhood. So for users, Groupon is a great place to find new salons, restaurants, and hotels in the area. A discovery and a deal! And for local small businesses, Groupon is an opportunity to drive local traffic to their site and attract first-time customers.

Applying the Secret: You want EVERYONE to know about your product, so why not start at home with the people who live and work in your area? But, don’t limit this Groupon secret to just generating new business. Once you start getting to know your community, take the time to build one as well. Get involved in a charity. Go to a Tweet-up. Organize a crazy (but meaningful) publicity stunt. Sorry. We have a seemingly endless list for this subject, too.

Secret #2: Go Big. Groupon specializes in deep savings, offering up to 70% off in some cases. This has obvious appeal to deal hounds out there. But, in most cases, the discount doesn’t turn out as a total bust for the business either. The average customer will spend 50 – 60% beyond the original voucher. Cha-ching! And 95% of businesses that used Groupon said they would use the service again.

Applying the Secret: Don’t be afraid to offer killer deals. If you’ve got a great product (and we know you do), a great coupon coupled with it may be the ticket for winning new loyal customers. Be creative. Give incentives to new clients like free dessert on their first visit. Hand out samples of your to-die-for muffins. Whatever you do, take time to think about how you can harness the power of a big deal.

Secret #3: Get Social. This is our favorite: Christopher Hiene claims in his ClickZ post that Groupon’s success lies heavily on people’s general acceptance of social media platforms. Here’s how it works: For a deal to be successful, a certain amount of people need to buy it (thus the “Group” of Groupon, for those of you just catching up). Scenario time! Let’s say you’ve had a long day and you NEED that the deal of the day massage. Come on! 50% off! The easiest way to seal the deal? Go to your local social media networks and promote it like crazy.

Applying the Secret: Getting social is an easy way to lead customers to your site. Use your Facebook page to communicate your deals or Twitter to host an online contest. If the success of Groupon teaches us anything, it’s that people in your community are ready to be social and ready to jump at deals in their community.

We’re not saying that if you follow these three secrets that your company will suddenly have a billion dollars in its bank account. But getting connected to your neighborhood, giving good deals on a great product, and getting your companies’ deals and voice out there are a great way to grow your business. Try it out and see.