We’ve all heard the scary stories of businesses getting clobbered by Groupon deals that brought in more customers than a business can deal with.
These horror stories suggest that Groupon customers won’t spend more than they have to in order to use their coupons.
But a source from American Apparel tells us he’s seen sales numbers following his company’s deal with Groupon “that disprove many of the ongoing doubts about Groupon.”
He says customers who purchased the $25 Groupon – worth $50 – ended up spending an average of $70 once they cashed in the deal.
Our source says the best part of the deal, though, was how American Apparel was able to add a whole bunch of Groupon customers to its own email list.
“The killer was email address acquisition… We converted approximately 25% of in store redemptions into signing up for our email list… which is on track to generate an additional five to six figures in online revenue.”
Groupon ended up selling 133,000 Groupons at $25 a deal in the US for a total revenue exceeding $3.3 million. Our source tells us Groupon came out of this deal with “much much less than half” of that $3.3 million figure.
If Groupon’s merchant customers keep coming away as happy as this American Apparel source, it will go a long way toward convincing people Groupon wasn’t so nuts to turn down Google’s $6 billion offer.
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