Merchants embracing group buying

Following up on my last blog post on Group Buying Trends, today we explore why group buying works and is an efficient marketing channel for many merchants.

Small and local businesses really take off

Part of the beauty of the group buying model, behind sites like Deal of the Day, is that its performance based and thereby an inherently low-risk model for retailers. Group buying is among the most cost effective channels for generating direct, trackable sales. We work with merchants to craft an appealing offer and merchants only pay for sales that are generated – there are no setup costs. There are very few, if any, other marketing opportunities for small and medium sized businesses (SMBs) where you only pay for sales and customers that ultimately walk through your door.

Group buying is also a great way for SMBs dip their toe into online commerce. Merchants can, in effect, generate online revenue and online transactions without having to setup any sort of ecommerce infrastructure. They also benefit from the reach and awareness that running an offer brings whether that’s through the e-mail list, syndication, or the site itself.

Because it’s a revenue sharing model, the cost to the retailer varies depending on the details of the offer, redemption rates, and the type of business. That of course also means it’s a partnership where our shared goal is to drive customers to the merchant’s door. That’show we both get paid, so the incentives are aligned. For consumers, Deal of the Day in essence acts as a guide to all the places, events, and activities in and around their neighbourhood.

Finding new customers

Discovery plays a big role in the group buying business as well. A customer might not have been looking for a deal on home cleaning but if they are on our e-mail list and see a great offer for home cleaning services, they can look at the merchant’s reviews, take a look at the offer, and ultimately consider buying and becoming a customer of that merchant. It’s a great way for merchants to increase their reach of their services and drive trials of their products and services.

A history of SMB success

We’ve got a fantastic group of properties where consumers can see and be exposed to the merchant’s brand and offers. Yellow Pages Group (YPG) has a long history of working with SMBs to successfully help build their business. Our interest is in partnering with these businesses to help drive sales for the long term, and that’s what’s allowed YPG to be successful for over 100 years. There are no other group buying companies that can say that they have that level of experience or history with SMBs.

To find out more about group buying for your business, contact us at or phone 1-800-277-9997.