This Infogaphic from MyCuponCodes shows some of the numbers (US) behind the mighty Groupon. With 5 Million subscribers, we all know that Groupon is huge but is it profitable for businesses? American Apparel’s recent Groupon deal – selling 133,000 group-buy Groupons at $25 (worth $50 each), demonstrates the value of attracting new customers, and the potential for up-sell opportunities:
“The killer was email address acquisition… We converted approximately 25% of in store redemptions into signing up for our email list… which is on track to generate an additional five to six figures in online revenue.”
The results: American Apparel said customers who purchased the $25 group-buy deal endedup spending an average of $70. With return on investment like this can companies afford to not get involved?
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[...] new customers. After selling more than 130,000 discounted gift cards via Groupon, the retail giant reportedly signed up roughly 25 percent of new customers to its email list, generating nearly $1 million in [...]