CoverBoom's Blog

The indelible tramp stamp of Groupon

January 30th, 2011 • Posted by Seth Gardenswartz • Permalink

Google is now ready to permanently mark your restaurant down 50%.  Starting this month they are displaying all of the Groupon deals run by local businesses in their search engine results pages ("SERPs"). This is part of a larger change Google made in October, which makes Google's Places data more prominently displayed as part of small business SERPs. That data has included reviews from Yelp, CitySearch and TripAdvisor. Now Google is showing your current and prospective clients the expired Groupon deals offered by your business.


Let's count the ways this is bad for restaurants.

  1. If you are like 40% of restaurants you might want to forget about financial nightmare caused by your Groupon.
  2. You probably would like prospective clients to feel good about your regular prices. Imagine the fun of talking your diner into a full price meal when he can still see that you sold it for half price a week ago.
  3.  Finally, and perhaps most maddening, when visitors click on the Groupon link the will see your expired Groupon and a prominent display of current Groupon deals FROM YOUR COMPETITORS!






So you did a little recreational Groupon a few months ago. So what? Well now it's more like a bad tattoo than a simple hangover: it's out there on Google forever. Add that to the real cost of doing a Groupon; it leaves a mark!

2 Responses...

Antonio C. says:
February 16, 2011 at 5:33 PM
I personally have had a good response to selling Gift Certificates online. The average diner comes in and spends well in excess of $100 dollars before and most times after the discount. I do agree, however, that Googles should NOT indefinitely display all the previous "coupons" that our restaurant accepted. I will personally take them to task!! Antonio Cerra Padre Figlio
Steven H. says:
September 9, 2011 at 9:00 AM
We are doing a program on marketing with coupons and this has been very helpful in seeing how it affects restaurants in our area. Great post and thanks! I have written a post that is tangential to this because customer service often brings a coupon customer back without the discount.
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