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Groupon Growth Hacking Success Story


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Groupon is a global e-commerce marketplace that connects subscribers with local merchants by offering goods and services at a discount. Founded in 2008, the company has grown to become one of the largest players in the daily deals space, with operations in over 15 countries and millions of subscribers worldwide.

You’ve probably seen an e-commerce website displaying how many items they have left in stock or how soon a deal would expire. That’s social psychology – making you feel like you have to act quickly before the offer expires.


The Growth Hack

In its early days, Groupon was one of the first to use that growth hacking psychological trick. They used it amazingly well and achieved terrific results. But Groupon took it one step further. They published a minimum number of orders that must happen to make the deal valid. They also published a limited quantity of coupons available.

That way, they create a sense of urgency, and on top of that, they encourage users to spread the word about the deal and Groupon!

In order to make growth even more rapid, Groupon used a few more growth hacking technics. Here are a few examples of how Groupon used growth hacking to drive its success:

  • Email marketing: Groupon used email marketing as a primary growth channel, sending out daily deals to its subscribers.
  • Referral Marketing: The company also used referral marketing, offering incentives to subscribers who referred their friends and family to buy deals in return for Groupon’s money. That’s a good deal as long as your CLV is bigger than the value you give for each referral.
  • Social media: Groupon leveraged social media platforms like Facebook and Twitter to reach a wider audience and drive traffic to its website. The company also used social media to engage with its customers, responding to feedback and questions in real time.
  • Partnerships and acquisitions: Groupon formed partnerships with companies like Google and American Express to expand its reach and bring in new customers.
  • Strategic acquisitions, such as its purchase of LivingSocial, to strengthen its position in the daily deals market.


The Results

Overall, Groupon’s success can be attributed to its focus on growth hacking and its willingness to try new approaches to drive traffic and acquire customers. By constantly experimenting and iterating on its marketing strategies, the company achieved tremendous growth in a short period and became a leader in the e-commerce space.

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