Groupon’s Recipe For Daily Deals Success

With more than 200 million global subscribers, Chicago-based daily deal provider Groupon has become a reliable outlet that restaurateurs can tap into in order to help promote new ventures and buoy flagging chains.

But with so much competition in this space, how exactly can a restaurant use a daily deals promotion to successfully set their establishment apart?

That’s the question that Groupon and the National Restaurant Association sought to answer as part of a new survey released via infographic and press release this May. In total, the study, conducted by Ipsos MediaCT, polled more than 500 restaurant decision-makers in February and March to get their views on how they believe this exposure can be leveraged into repeat business.

“Daily deals remain a very popular form of marketing for our members, and these are some important steps restaurateurs can take to help ensure a greater return on their investment,” Julia Kanouse, the National Restaurant Association’s vice president of strategic marketing, said in a release.

In this PYMNTS.com Data Point, we’ll take a closer look at the tips and statistics offered by Groupon and the National Restaurant Association.

Defining Success

To begin, the organizations discussed how restaurateurs view success, with the largest share – 72 percent – suggesting that promotions should be judged by the number of new customers they are able to generate.

Coming in second and third in the study’s survey were increased exposure and number of deals sold, which grabbed 67 percent and 60 percent of the vote, respectively.

Preparing For Daily Deals Success

Groupon and the National Restaurant Association also offered their best practices for companies who have set their definition of success and put in motion plans to go forward with a daily deal. They advise these restaurants to schedule deals based on the business’s needs and seasonality, estimate the promotions impact on profitability and analyze the metrics of the campaign with tools provided by the daily deals company.

Succeeding During The Promotion

The study sought to analyze the specific tactics that separated restaurants who completed these promotions successfully from those who were unable to turn the giveaways into leads and conversions. Overall, the researchers found one commonality: eateries that saw success used a variety of media channels to support these goals.

For example, 94 percent of these businesses engaged with customers via social media, 73 percent connected with daily deal buyers through email and 71 percent promoted their organization through newspaper and magazine ads.

Building On Daily Deals Success

In addition to engaging with daily deals buyers through complementary marketing channels, Groupon and the National Restaurant Association say that there were also similarities between how businesses built on this success.

The study found that 77 percent of successful restaurants ran more than one daily deal, while 79 percent monitored online review sites to see what users were saying about their experience, an activity that likely helped them pivot as needed based on real-time customer feedback.

Encouraging Repeat Visits

For this, Groupon and the National Restaurant Association suggest restaurants establish or revisit their customer loyalty program and prepare staff for what could prove to be a busy time during the promotion. During this period, they say, tracking offer redemption and looking for upsell opportunities are key.

For an easy-to-read, graphic overview of these facts and tips, view the complete infographic below.