Naperville businesses use Groupon exposure as marketing tool

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Andrew Mason is the founder of Groupon, which started a new way to make cash online.

Updated: November 9, 2011 4:51PM

Consumers are well aware of the advantages of using Groupon. But, more and more Naperville businesses also are learning how to make Groupon work for them.

“I was looking for ways to get marketing exposure across the whole city in one shot as opposed to the traditional, more expensive ways of advertising — print media, radio or television,” said Beau D’Arcy, president of Naperville-based Effortless Efficiency.

D’Arcy’s company ran a weeklong Groupon deal in August. He immediately saw the effects, selling more than 20 deals, which offered a home efficiency assessment and furnace-system duct sealing for half price. But for D’Arcy, more important than the sales, was the brand exposure Groupon provides. D’Arcy saw web traffic on the first day of his company’s Groupon deal rise to levels higher than he typically sees in a month. He also spent the first two days his company’s deal was offered fielding phone calls about it and his business.

“The way I looked at the deal is that it’s not necessarily a revenue generator,” D’Arcy said. “You aren’t going to get some huge check that’s going to set us for the year. At the end of the day, it’s a free marketing tool that, for a small business like myself that can’t afford to go through traditional channels to get this exposure, is a great way to go.”

How it works

According to Groupon’s website, each deal is negotiated on a case-by-case basis. After the Groupon deal has closed, Groupon keeps a percentage of each unit sold. Typically the business receives their portion in three separate payments over the next six months.

According to Alison Segebarth, director of marketing and membership at the DuPage Children’s Museum, the way Groupon handles cash flow and payments are a couple of reasons she has found it to be advantageous. Segebarth said she also has been pleased with the results they received and the audience they reach with Groupon. So happy, in fact, that they have run two deals during the last year.

“We’re very happy with the results,” Segebarth said. “It’s something we are definitely continuing to evaluate to use as a tool to increase our awareness.”

Kelsey O’Neill, a Groupon spokesperson, said that Naperville businesses are increasingly seeing the benefits of Groupon.

“As an extension of our hometown Chicago market, Groupon has seen much success in Naperville,” O’Neill said. “For local businesses, we’re creating new customer relationships and fueling local commerce.”

New customer base

While a Groupon feature puts businesses in front of thousands of subscribers in the Chicagoland market, according to D’Arcy, Groupon also can identify where the purchases were made, providing companies with market research that may otherwise be costly.

“For a small business in Naperville trying to grow outside the Naperville footprint and expand to the entire Chicagoland market, I saw this as a great way to test the waters and see what the response would be,” D’Arcy said.

For a business new to Naperville, Groupon also can be a way to let consumers know they have opened their doors. Armand’s Pizzeria is one such company, which launched its business here in January. They recently sent Groupon their business description and had their deal featured in August.

“For me, I knew Groupon reaches to so many people, and I’m just looking for the exposure,” Armand’s owner Pat Allen said. “I understand most people will just spend (the Groupon), but I’m looking to get new customers.”

For Allen that means, for those who enter his doors with a Groupon, he gives them additional coupons so they will become repeat customers. Allen said he now sees customers coming in using the Groupons.

“We love it so far,” Allen said. “It’s been exciting.”