Locally-owned businesses have suffered since the economic downturn. Many consumers believe that in order to save money, they should shop with larger retailers who can offer them bigger discounts. This trend is changing with sites like Groupon who are encouraging people to shop locally by buying coupons. While these sites do offer some deals from national companies, local hotels, restaurants, salons, and shops are reaping the benefit of this service.
The basic premise of these sites is that the consumer is offered a daily deal by a local business, such as $20 worth of merchandise for $10. The deal is only offered if enough consumers purchase it that day. The consumer can check in on the website every day to see what is offered, or they can choose to have the deal emailed to their inbox.
With more and more people signing up for these deals, local businesses are seeing the benefits. The consumer may purchase a deal from a business that they haven’t heard about, which will create new customers for the business. Even if the consumer doesn’t purchase their product, they will see the business name and services offered.
Businesses can get even more exposure through the social media aspect of the service. Subscribers can receive bonuses, either through cash or free deals, if their friends also sign up for the deal. Subscribers can spread the word through Facebook, Twitter, or other social media outlets.
Since the usage and benefit of social media changes daily, businesses will also have to change how they reach new clients. As we look toward 2011 and beyond, businesses can benefit from the social media aspect of these sites. Since these sites mainly focus on individual cities, local businesses can see the advantage to signing on for a deal. Positive word-of-mouth is alive and well in the online, and local, community.