After You See This Data, You'll Never Call Groupon A Ponzi Scheme Again

Groupon, nasdaq, ipo, bell ring, andrew mason, nov 2011

Photo: NASDAQ

About a year ago, merchants using Groupon started complaining about nightmare scenarios in which groupon-wielding customers would come in, buy only discounted items and then never come back.These stories led to theories that Groupon was a ponzi scheme that would eventually run out of steam in part because no merchants would ever use it twice.

Well, it turns out that Groupon might actually be nothing more or less than a useful marketing tool for small businesses.

New data from daily deals aggregator Yipit says that an increasingly large part of Groupon’s business is repeat business from merchants.

41% of Groupon’s merchants are repeat customers. 48% of Groupon’s gross billings come from repeat merchants; that number is 56% among the local merchants who make up Groupon’s core business.

Clearly, merchants like using Groupon and feel like the money they lose offering discounts through it is an appropriate amount to pay for attracting new customers.  

To the charts!

Groupon Repeat Business
Groupon Repeat
Groupon Repeat
Groupon Repeat Business

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.

Tagged In

groupon sai-us