The Use of Collective Buying for Market Research
For any business that has not yet heard of groupon.com, it’s definitely worth your consideration. They use the power of collective buying to deliver a great value proposition to both consumers and businesses. Businesses get risk free advertising, new customers, and increased revenue; consumers get great deals and find out about new products and services that interest them. The groupon site does a great job of describing the process; check it out their video here.
Not only is using groupon a great business tool in and of itself, but it’s also interesting from a market research standpoint. Want to gauge the demand for a new product or service? Want to see if your product will sell to a new demographic? Want to see if an expansion of services will help or hinder your value proposition? You can do this all risk-free using groupon’s services.
You can set up any promotional, targeted at any audience, for free. If there’s no demand, then you don’t pay anything. If there is demand, then groupon just gets a cut of the revenues you earn from the promotional. What’s more, you can track how many new customers come from the groupon promotional and who they are. This will give you data on the amount of demand and the customer base so you can successfully implement further marketing efforts.