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Groupon incentivizes app downloads with Target gift card offer

July 1, 2013

Groupon is encouraging consumers to download its mobile deals application by offering them a $10 Target gift card for $5.

The company turned to its email database to reach its existing users. Over the past few years, Groupon has been steadily building up its mobile efforts.

“First and foremost, this is a great deal for our customers,” said David Katz, vice president and general manager of consumer mobile at Groupon. “Our mission is to deliver the best deals on the planet for the things our customers want.

“Also, Groupon embodies and values the concept of shopping local and we’re excited to offer this savings from Target, a partner whose stores and people have become a fixture in many of the communities it serves,” he said.

“The opportunity to pair Groupon’s reach and platform with a great offer from a company like Target is an easy decision.”   

Mobile incentives
On June 27, Groupon sent out an email blast with the subject line “$5 for a $10 Target Mobile Gift Card.”

The email enticed consumers to download its mobile app, sign-in to their Groupon account and tap the featured tab and then purchase the deal.

From there, consumers are able to redeem it at the point-of-sale.

When users clicked on the email, they were taken to a mobile landing page that further promoted the effort, as well as included the link to Apple’s App Store.

Consumers who already have Groupon’s mobile app can simply open it to access the Target deal.

“Mobile is central to our strategy,” Mr. Katz said. “In March, 45 percent of Groupon transactions in North America happen on mobile and we’re well positioned to become a mobile first company.

“We have apps in 42 countries and our apps are highly rated in both iTunes and Google Play,” he said. “And Apple recently called us out as one of the 25 most downloaded free apps of all time.”

Past efforts
Groupon is no stranger when it comes to mobile.

In April, Groupon added a universal search feature to its iPhone and Android applications (see story).

A month later, the company reported that 45 percent of its North American transactions in March came from mobile as users increasingly look to the company for local offers when they are on the go (see story).

Most recently, Deutsche Bank analysts upgraded Groupon’s stock from hold to buy, pointing to the company’s growing mobile sales and its strong position as a mobile ecommerce merchant (see story).

“For us it’s all about the mobile-first world,” Mr. Katz said. “Activity at every level of the purchase funnel is moving to mobile quickly.

“Customers are opening email, doing their research and making their purchases on smartphone and tablets,” he said. “We are thinking of mobile as the primary platform many users and pivoting to be successful in that world.”

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Rimma Kats is associate editor on Mobile Commerce Daily and Mobile Marketer. Reach her at

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