Groupon vs. RetailMeNot: Which Platform Will Grow Your Local Business?

Summary:

While both platforms feature promotional deals, Groupon and RetailMeNot are built for different business goals. Choosing the right one depends on whether you need new customers or just want to promote an existing coupon.

1. Groupon: A powerful tool for bringing new, first-time clients through your door, particularly for local services like spas, restaurants, and activities. You only pay a fee when a sale is successfully made.

2. RetailMeNot: A coupon aggregator that helps distribute discounts you’ve already created (like promo codes) and is mainly used by customers who are already about to buy. It's best suited for online retail and major national brands.

Groupon: Your Solution for Finding New Local Clients

For owners of local service businesses—like independent restaurant and bar owners, spa and salon owners, or companies offering things to do and home & auto services—Groupon acts as a marketing and sales partner designed for two main benefits: getting new customers and monetizing your empty time slots.

1. Actively Finding New Clients

Groupon is much more than a place to post a discount; it is an active platform focused on bringing genuinely new people to your business. We invest in search, email, and social media to market your specific experience to our millions of subscribers who are looking for local services to try for the first time.

• For a Beauty & Wellness Owner: A new hair salon doesn't need to advertise to its loyal clients; it needs people who have never visited to book an appointment. Groupon showcases your special introductory package directly to local shoppers looking for a new place to get a great service, turning them into first-time clients.

• For a Food & Drink Business: Instead of relying on foot traffic, a local bistro uses Groupon to get its introductory meal deal in front of thousands of people nearby who are looking for a new place to dine out.

2. Monetizing Empty Time Slots and Seats

The value of an empty table at a restaurant or a slow afternoon for a cleaning service is zero once that time passes. Groupon provides a smart way to sell that unused capacity.

• Example: A yoga studio can create a deal specifically valid only for their 10 a.m. class on weekdays. The platform acts as a simple tool to acquire new clients and fill appointment gaps without affecting revenue from the fully-booked 6 p.m. class.

The Groupon Model: Paying for Results, Not Promises

Unlike buying traditional ads where you pay for clicks or views whether they lead to a sale or not, Groupon operates with no upfront cost. We only collect a small marketing fee after a customer successfully buys a voucher for your business. This simple payment structure makes it a financially safe and cost-effective way to invest in advertising for growth.

RetailMeNot: Distributing Discounts for Existing Traffic 

RetailMeNot's strength is in listing and aggregating coupons, mostly for businesses selling physical goods.

1. Primarily Used at Online Checkout

The platform's main value is serving customers who are already heading to your website and are searching for a final discount code (e.g., "XYZ store coupon code"). RetailMeNot captures this traffic and provides a discount the customer was already hunting for. This is great for conversion—getting a known customer to complete a planned purchase—but not for acquisition—finding you a new local client.

2. Less Focus on Local Services

While RetailMeNot has some local offerings, its customers are generally looking for a coupon for a national retailer or an item they've already decided to buy. They are not typically browsing to discover a new local experience the way a Groupon customer is. For local services like a massage, a dental check-up, or a city tour, RetailMeNot is less effective at inspiring a trial from someone who has never heard of you.

Getting the Most Out of Your Groupon Partnership

If your business chooses to partner with Groupon, success is found in strategy. You can easily manage your deal to ensure that new customers turn into loyal regulars and incremental revenue.

• Offer a High-Value Introduction

  • Design your deal around a specific, popular entry-level service (e.g., a basic car detail, a signature manicure, or an initial consultation).

  • This encourages the new client to try your best work, and it leaves room to upsell them to higher-margin services during their visit.

• Protect Your Busy Hours and Drive Business Toward Slow Times

  • Use the Merchant Center tools to set clear rules for when a voucher can be redeemed, and monthly voucher limits so you don't get overwhelmed with demand.

  • Make your deal bookable so that clients can set an appointment during your available hours right when they purchase the Groupon.

• Turn a One-Time Buyer into a Regular Client

  • The moment the customer is in your business, the goal shifts to retention.

  • Deliver outstanding service, capture their contact information for your own email list, and offer a simple incentive (like a small discount) to book their next visit directly with you.

By focusing on a smart strategy, Groupon acts as a vital tool to consistently bring new customers into your business and turn your empty slots into profit.

Ready to join the 1 million+ merchants who've worked with Groupon?