Groupon has got its groove on, topping 2 million subscribers, expanding to 28 cities and reaching deals with brands such as Zipcar, the National Basketball Association and Blockbuster, AdAge.com reports.
The site emails one deal per day, per city to its subscribers, and the deals usually slash 50% off the cost of dinners, spa packages and other experiences or products, according to AdAge.com.
But why is Groupon working so well?
Zipcar vice president of marketing Stephanie Shore told AdAge.com in an email:
They’re a great local partner in many of our cities. The viral nature of their community plays to our strength as a word-of-mouth brand.
Scott Silverman, executive director of Shop.org, the digital division of the National Retail Federation, told AdAge.com:
I think what’s different today is that the communication mechanisms are so much greater than they were with mobile, Facebook and Twitter. You have a population that is comfortable with participating in the Internet, not just reading things. It seems like the perfect time for this idea.
And Groupon founder Andrew Mason added:
It’s commerce layered on top of the social graph. It’s a method of buying things that’s propagated over sharing tools like Facebook or Twitter, without which it couldn’t exist.