Groupon CEO Andrew Mason Shares A Few Thoughts

I was at the recent CrunchUp and Groupon’s CEO Andrew Mason shared a few interesting factoids about his business with Michael Arrington.

I chatted with Andrew during a coffee break — seems like a nice guy. We both have close friends who graudated New Trier High School in Winetka, Ill.

The first thing that struck me is how casual he appeared — t-shirt, jeans sandals and a low-key personality.

I thought it was cool how this mellow guy is revolutionizing commerce and putting Chicago on the map for Internet business (I imagine you’ll see numerous new Chicago Internet startups as early Groupon employees cash out (some already have) of this multi-billion dollar business to start new businesses.)

Below are my notes from some stuff that he and Arrington shared onstage:

Some Groupon Numbers:

• $1 million in revenue per day (this is what Arrington heard and Mason didn’t confirm nor deny it)
• 1,000 employees
• 12 million people receiving an email every day (with 2 million new ones added each month)
• Gross Margin is 50%
• Repeat Rate: “97% of businesses we feature want to be featured again.”
• Breakage Rate is around 10% (e.g. 10% of Groupon users do NOT redeem their coupons).

Groupon Customer Acquisition

The top sources of [free] customers for Groupon:

1. Facebook is the top
2. Twitter is a close second

The bulk of paid customer acquisition for Groupon is Facebook and Google.

Other interesting Groupon Factoids:

• Regarding Groupon clones, he says “the basic idea of Groupon is not something we can have a patent on”
• We have 6-month waiting lists on Groupon for many cities.
• “A lot [of the $135M raised in the last round] was taken off the table…by early founders.”
• An example of one Groupon deal that didn’t work: Slippers with flashlights didn’t work