Business Model Institute : Groupon Business Model vs. Val-Pak

For some, coupons are dead and are a relic of the older days. I’m a heavily Internet-connected late 30s tech-aware consumer and yet I still open my envelope of Val-Pak coupons. I look at each and every coupon and from time-to-time I keep a coupon or two.

This has me wonder if the Val-Pak business model can still survive in the age of Groupon? Are the business models of these seemingly different businesses really that different? Both companies want you to take them up on their offer and seek out the businesses they are effectively advertising and promoting.

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How To Turn Current Customers Into A Sales Force For Your Business With Group Buy Promotions

One of the biggest benefits of running a group buy promotion is that it allows a business to leverage existing customers as salespeople to bring in new customers similar to themselves. Your current customers who love your business want to spread the word, but they aren't likely to go around shouting the virtues of your business from the rooftops (or via facebook and twitter) without a reason to do so.

Your daily deal gives your current customers a reason to talk about your business to their friends (your best prospective customers...the ones that will stick) and a sense of urgency to do it the day of the deal so their friends can save a significant amount of money when they try your place.

In order to share the deal and how great your business is with their social networks, your customers need to know about your deal the day it's running and should ideally have advance notice that the deal's coming.

Following are ideas to let your current customers know about your group buy promotion and encourage them to share your business with friends.

Facebook Wall Posts- Pre-Deal Announcements

Posting about your upcoming group buy on your business and personal facebook walls (and encouraging your entire team, friends, family, etc.. to do the same) is a great tactic a few days before your promotion to make sure the biggest social media sharers in your base of "raving fans" are aware of your group buy deal and standing ready to support you via social media on the day of your deal.

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Groupon Keeps it Simple With its Groupon Stores Deal Alert Emails

If you were wondering how Groupon was going to incorporate the savvy visual and copy style that has added an entertaiment value to its daily Groupon emails into its new Groupon Stores emails, it looks like they are too...or have decided not to.

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