Groupon Helps the Economy

As a whole, Groupon helps the Economy. From a business perspective it allows a way of advertising that will help grow a customer base and lead to a positive awareness of the company. The productiveness of a company helps the productiveness of the economy. For consumers, it offers items or services at a discounted price helping people save money, and people are more inclined to buy at a decreased price. Both aspects help the money flow between businesses and people. Groupon as a company hires thousands of people, and through their salary the money earned by Groupon is sent back into consumers hands. This creates a healthy flow of money between companies and consumers that will support a healthy economy.

Click here to see stats that prove Groupon's helpfulness.

http://www.digitalbuzzblog.com/infographic-the-effectiveness-of-groupon/

"The Effectiveness of Groupon: Infographic | Digital Buzz Blog." Digital Buzz Blog. N.p., n.d. Web. 11 May 2013.

Groupon and Credit Cards

In 2012, Groupon started to offer credit card processing option for retailers. With this it allows the customer to buy with a credit card and then the retailer uses a device to recognize and charge what the customer bought. This helps the company by making it easier for the customer to shop. The device is also offered to the shops at a lower cost than other similar products. With this device Groupon can better track what else customers buy along with the offered item, and collect more data to track the production of Groupon. The credit card option can also help people earn a good credit score, since most products are a low price and easy to repay. Since, the credit card processor helps companies by being more productive and helps customers with possibility of raising their credit, it also helps the Economy.

Click here to watch a video about credit card processing.

http://www.bizjournals.com/chicago/news/2012/09/19/groupon-becomes-a-credit-card-processor.html?page=all

"The Story behind Groupon's Credit-card Processing Business." Crain's Chicago Business. N.p., n.d. Web. 11 May 2013.

Why Is Groupon so Successful?

Groupon works well because it is popular to the right generation. With new technology used and easy accessibility from iPhones, Groupon targets the younger generation. This helps the profit of the business because many of the items are more relevant to ages 18-34. At this age people are looking for multiple ways to save money while they are just getting started financially, but still wanting to maintain a well-off lifestyle. In this way, Groupon helps the economy because it allows people to be more thrifty with money, and in turn save more for important items, like mortgages and insurance. When people are more responsible with their own money the economy is healthier.

Click here to see the demographics of Groupon.

http://www.businessinsider.com/groupon-demographics-0-2010-5-charts-2

"Why Groupon?" Why Groupon Works for Business. N.p., n.d. Web. 11 May 2013.

Groupon Company Helping the Economy

Groupon as a company itself also helps the economy. Since it started in 2008 Groupon is now in 48 countries with headquarters in Chicago Illinois, PAlo Alto California, and Seattle Washington. In total Groupon employs 12,500 employees. The creation of Groupon opened up many new career opportunities to help the state of the economy. Groupon also holds stock which helps investors and helps regulate the economy.

Look here to see Groupon's stock.

Look how the amount of jobs under Groupon increased.

http://www.theverge.com/2013/3/13/4079280/greed-is-groupon-can-anyone-save-the-company-from-itself

"Why Groupon?" Why Groupon Works for Business. N.p., n.d. Web. 11 May 2013.

Groupon Helping Consumers

It is now clear that Groupon can help businesses if used for the right reasons, but how can it help consumers? First and foremost it offers products or services for at least half off. It offers many things from classes, meals, manicures, oil changes, vacations, or whatever businesses are advertising. Many things like oil changes are a necessity anyways, so a discount for this can help consumers save money. Discounted items also help keep money circulating in the economy because people are more inclined to buy something when there is a sale on it. Consumers saving help the state of the economy as well.

Check out the current deals today!

The percents of different categories offered on Groupon.

http://allthingsd.com/20110808/americans-more-likely-to-buy-pole-dancing-classes-than-gym-memberships-says-livingsocial/

"Why Groupon?" Why Groupon Works for Business. N.p., n.d. Web. 11 May 2013.

Example of Groupon's Success

The positive effects of Groupon can be shown through the case study Business News Daily did in the the Sweetgrass Spa. The signed up for Groupon because they needed to attract more costumers. In total their promotion sold to around 140 Groupon members, and earned $33,000. On top of that 43% of people have returned and 52% have bought additional items, other than what was discounted on Groupon. Sweetgrass Spa is just one example of how Groupon helped a business succeed.

Click here to read the whole article about the Sweetgrass Spa.

This chart shows the different types of customers that use Groupon.

https://www.grouponworks.com/merchant-resources/merchant-center

"How Groupon Helps Small Businesses Pump Up Their Volume."BusinessNewsDaily.com. N.p., n.d. Web. 11 May 2013.

Positive Effects for Businesses

Groupon will affect a company, as long as the company is looking to receive awareness and new customers. If they are only looking to receive an initial money revenue, Groupon will not help since they will only receive around 25% of the original price. Groupon will help introduce new customers to a company they otherwise wouldn't know about. Groupon reports that businesses have an 87% increase in awareness and a 72% increase in the perception of their store. With the raise in these two things customers will have repeat business from new customers that will help the revenue of the business in the future. If used in the correct way Groupon can positively increase the business of a company and therefore increase the state of the economy.

Watch to see how NYC Bagel Deli's increased their customers through Groupon.

With the exposure from Groupon the business is recieving a lot more attention!

https://www.gettingmoreawesome.com/2011/08/02/groupon-like-a-pro/

"The Groupon Effect on Small Business." BrandMakerNews. N.p., n.d. Web. 11 May 2013.