More on Why Groupon is Great for Small Businesses

Last month we wrote about why Groupon clones are actually good for small businesses, and now a post over on investment site Seeking Alpha has more evidence backing that up. Citing a report authored by Rice University, "if a company runs a deal that sells 1,000 vouchers, 200 customers will come back."

Seeking Alpha goes one step further by offering some tips on ways to improve those rates of return: discount just the first session, offer an incentive for them to come back, collect their contact info for special promotions, and surprise and delight daily-deal customers.

The site also points out some additional ways Groupon is advantageous for smaller businesses: Even if the deals bought aren't redeemed, the profits associated with them can still be kept without incurring the cost.

For that and more read the full piece over on Seeking Alpha.

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