Asked by: Salome Jolasoroasked in category: General Last Updated: 5th May, 2020
What is Groupon's value proposition for its customer?
Similarly, what is Groupon's business model?
Groupon Business Model In A Nutshell. Groupon business model is a two-sided marketplace where local consumers meet deals from local merchants. The company makes money by selling local and travel services and goods. Its value proposition based on attracting local customers to local merchants is quite compelling.
Also Know, how does Groupon make their money? Groupon makes money by charging a marketing fee advertising and promoting their offers. In most cases, that fee is a percentage of the revenue generated by selling on Groupon. Groupon's transparency with its customers extends to merchants as well. When you sell on Groupon, there are no hidden costs or fees.
In this regard, what are the key components of Groupon's current business model?
Groupon – Business Model
- Customer Segments. Groupon's business model targets two main customer segments, namely the customer wanting to purchase a coupon and the business who is providing the coupon.
- Value Proposition.
- Customer Relationships.
- Revenue Streams.
- Key Resources.
- Key partnerships.
- Cost Structure.
How does Groupon work for business?
Groupon is an advertising platform that is largely geared toward serving local markets. Businesses can use Groupon to promote discounts (vouchers) for services and products. Customers purchase your deal, and the company collects money on your behalf. Groupon takes a cut off the top; you get the rest.