Groupon has long been a household name for scoring deals on restaurants, events, and other services. But with the spread of COVID-19 leading people to second-guess group activities – not to mention turning discretionary spending on its head – how has Groupon weathered the storm and what does its future look like?
As the data show, 17% of U.S. adults have used and liked Groupon in the last 30 days, but this number has fallen from 25% in 2019.
Currently, adults between 25 and 34 years old, women, and those who earn more than $100,000 a year are the most likely to have used and liked Groupon. Consumers ages 18 to 24 show the most potential for adoption.
Those who like to splurge on a physical product are also the biggest Groupon fans, which is interesting considering Groupon’s offers are typically experiences and services. People who like to pamper themselves with experiences have the greatest percentage of consumers who were unsatisfied with the platform.
The 20% of people who splurge on experiences who also intend to check out Groupon is a positive marker for the brand, but what about the ongoing pandemic, specifically the impact of the Delta variant?
Currently, Groupon favorables express the gravest concern about the Delta variant, but people who plan to use express more moderate concern. Overall concern about the Delta variant is lowest among people who aren’t at all interested in Groupon.
Looking at types of activities and experiences consumers are comfortable with is more telling. Satisfied Groupon users are extremely comfortable in restaurants right now, but events and traveling are a little different. The data indicate that people who plan to use Groupon aren’t quite ready to return to concerts and sporting events, but it’s possible they might be back to experiencing events by Thanksgiving.
People who plan to use Groupon are also the least likely to be comfortable traveling or going on vacation now. This could be influenced by the fact that it isn’t quite the vacation season any more, but the one-third of those who plan to use the platform and would also be comfortable traveling or vacationing in less than two months, might stir up enough activity.
It is worth noting that people who intend to use Groupon over-index in being early holiday planners. Seventy-five percent have already started thinking about the holidays and 21% say they are doing a significant amount of legwork now.
While comfort with various in-person experiences is still quite varied, it doesn’t seem like Groupon is going to miss out on the action. And perhaps increased vaccinations and getting into a school-year groove will shift Americans’ tone of life to something more active this holiday.