Groupon comes to Salem

| Print |  Email
The Latest
Thursday, November 11, 2010

By Jacq Lacy

Capitol City Theater sold out its improv comedy shows two weekends in a row after signing up for the online marketing services of Groupon-Salem, which launched on the first day of November.

The Salem theater opened on June 26 using a guerrilla-style marketing campaign relying heavily on social media. Owner Chip Conrad came upon an ad for Groupon on the website Mashable.com, an online guide to social media, and decided to give it a try.

"My representative and I were really shooting to sell 250," Conrad said. "Once we passed that number by two o'clock it made me really happy to know that Salem is interested in live comedy." 

By 11:57 pm on November 2 the theater had sold 387. Business increased 60% in the first weekend and the theater only has five seats left for the coming weekend, Conrad said.

Conrad has tried Facebook advertising, growing his e-mail database, and running ads in the Statesman Journal, "but everything pales in comparison to the effect the Groupon had on my business," he says. 

Since the Salem debut, eight companies have partnered with Groupon to reach approximately 25,000 Groupon members in Salem. These companies include Jonathan's Restaurant, Technical Artistry Salon and Micro Spa, the ski and snowboard shop EXIT Real World, Willamette Burger Company, Hydrosports Dive and Travel, Gamberetti's Italian restaurant and Serenity Salon. 

Groupon celebrates its second birthday this month. The Chicago-headquartered company began Portland-Groupon in October of 2009 and now has expanded its reach into Salem. The company sharpens advertising copy and organizes discounts of 50% or more once enough people purchase the deal. Groupon assures  its businesses a minimum number of clients, otherwise the deal is off. Companies do not pay any upfront costs but they do pay a percentage of each Groupon sold to the advertising company.

On November 3, Technical Artistry manager Niatasha Holman chose to use Groupon to gain more clients in Salem. The company offered its most popular spa package for $40 instead of the usual $80. Holman hoped to sell 200, but the salon sold 131 packages that day.

"There's no disappointment. It was a great experience. 90% are new clients,"  Holman said. "We'll definitely do it again."

Hydrosports, a dive shop located in Keizer, Oregon, since 1997, offered Scuba courses at a discount on November 8. Mark Fischer, owner and president, says the deal outperformed other marketing programs by producing the largest one-day impact of anything he has ever tried.

The dive shop sold 42 of its advertised packages, 12 of which were for the full dive certification.

Fischer utilized his own e-mail networks hyperlinking in his e-mail, the deal website created by Groupon. He already had orders for ten packages before Groupon sent out the deal to its e-mail database.

"I will get dozens of new customers," Fischer said.

EXIT co-owner Jake Hauswirth heard about Groupon after a contact from Bonfire Snowboards suggested they look into it. After an unsuccessful attempt to contact Groupon to enter the Portland Groupon deals, Groupon contacted the company to advertise in the Salem area. However, he did not receive an overwhelming response and hopes that it might run the same offer in the Portland market with greater success. Even though the deal did not receive as many purchases as the company had hoped, Hauswirth is certain that the "20,000 e-mails it went out to were for good advertising."

On November 10, Groupon advertised a manicure and pedicure at owner Danielle Ngo's Serenity Salon. The package, normally $35, sold for $17. By 2 pm, 514 Groupons had sold.

Jacq Lacy is an associate writer for Oregon Business.

 

Comments   

 
Nora
0 #1 GrouponNora 2010-11-12 08:41:07
It's great that Groupon has expanded to Salem. This means more savings for more consumers all over!

A great site to use to find the deals and sales in your specific area is http://www.dailydealpool.com. They'll send you a daily email with all the best buys, so you can always save money.
Quote | Report to administrator
 

More Articles

6 development projects reshaping Bend

The Latest
Thursday, April 09, 2015
bendthumbBY JACOB PALMER | DIGITAL NEWS EDITOR

Bend has reclaimed its prerecession title as one of the fastest growing cities in the country.


Read more...

Beam Me Up

April 2015
Thursday, March 19, 2015
BY DAN COOK | Photos by Jason E. Kaplan

An alliance of developers, academics and timber industry executives wants to position Oregon as a front runner in the glamorous new world of wooden skyscrapers.


Read more...

The 100 Best Companies to Work For in Oregon

March 2015
Thursday, February 26, 2015
BY KIM MOORE | OB RESEARCH EDITOR

Employment in Oregon is almost back up to prerecession levels — and employers are having to work harder to entice talented staff to join their ranks. This year’s 100 Best Companies to Work For in Oregon project showcases the kind of quality workplaces that foster happy employees. 


Read more...

Bike Chic: 7 stylish options for cyclists

April 2015
Thursday, March 26, 2015

Cycling to work is all the rage. But not everyone wants to arrive at the office messy, sweaty — and unfashionable.


Read more...

Power Players

April 2015
Friday, March 27, 2015
BY ROBERT MULLIN

A new energy-sharing agreement sparks concerns about independence and collaboration in the region's utility industry.


Read more...

Much ado about data-driven organizations, for good reason

Contributed Blogs
Monday, April 13, 2015
bigdatathumbBY GRANT KIRBY | OP-ED CONTRIBUTOR

The mega-shift from technology-driven to data-driven organizations raises questions about Oregon’s workforce preparedness.


Read more...

Beyond Bodegas

April 2015
Friday, March 27, 2015
BY JACOB PALMER

Five years in the making, the Portland Mercado — the city’s first Latino public market — will celebrate its grand opening April 11. A $3.5 million public-private partnership spearheaded by Hacienda CDC, the market will house 15 to 20 businesses in the food, retail and service sectors. It has some big-name funders, including the Paul G. Allen Family Foundation and JPMorgan Chase. The project goals are equally ambitious: to improve cross-cultural understanding, alleviate poverty and spur community economic development. 


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS