CHART OF THE DAY: 66% Of Groupons Are "Profitable" For A Business

button more charts
button chart prev
button chart next

Groupon is a runaway success, generating revenue at $2 billion annual run rate. But is it sustainable?

To answer that question, Utpal M. Dholakia, a marketing professor at Rice University, surveyed 150 businesses that used Groupon.

Of the people he spoke with, 66% found Groupon to be “profitable.” In his study, profitable means the Groupon generated enough additional sales to justify the initial discount. In other words, it’s looking at the long term implications of using Groupon for a business.

The vast majority of the companies that had successful Groupons said they would do it again, so it appears that Groupon has a sustainable business on its hands.

chart of the day, groupon promotions, dec 2010

Follow the Chart Of The Day on Twitter: @chartoftheday

NOW WATCH: Tech Insider videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.