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  1. #1
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    What do you think of Groupon's business model?

    Found an interesting article about the start-up on MediaPost this week and was wondering if you've ever used the service or had a point of view? Looking forward to a robust discussion with my IMC friends.

    Groupon Feels The Burn via Media PostNews

  2. #2
    I can't say I've ever used groupon, but I did have a friend who used restaurant.com to print out coupons for restaurants. The deals were really good and worth the membership fee. They had crazy deals like spend 50 dollars and get 30 dollars off. I don't know how the businesses that gave out these coupons fared though, but this seems to be a common practice for restaurant discounting companies.

  3. #3
    I've used Groupon as a customer and have friends that use them as clients. Business model is incredible, it's a win/win/win. Purchaser gets a great deal, client gets customers (hopefully repeat or spending over intial cost), Groupon takes half the cost of the purchase. Not sure about the underlying costs of marketing and a sales force though. Not sure if they are very profitable, or profitable at all for that matter. It's worked out very well for my friends, and I'm sure Groupon also!

  4. #4
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    The article talks about some of the business clients frustrations with fulfillment of the offers. Customers were turned down. Businesses couldn't handle the volume. So my question is does Groupon have responsibility for these kinds of issues? Of course, the onus should be on the business owner to design a marketing offer they can support. But I think Groupon could do a better job helping these businesses have a better outcome. Too often a company's focus is too hyperlinked to landing the deal instead of on the experience delivered. IMHO - There's no better way to burn a new business relationship than to drop the ball on the deliverables. Set expectations to truly deliver the win//win you promised in the sale.

  5. #5
    Not sure I understand what the article talked about... but Groupon does have the responsibility to explain to clients the response that they can expect. Of course selling 1,000 Groupons to a small yoga studio is not going to work for anyone. It would create frustrations with the studio turning people down and with the customers towards Groupon for an unfulfilled purchase. Doesn't bode well for Groupon on both ends. I've seen groupons with a maximum purchase number... maybe this is what they are doing to resolve the issue.

  6. #6
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    Erika Barbosa is an Ambassador!
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    I subscribe to Groupon and LivingSocial but haven’t actually used them yet. I definitely think the business model works. But I completely agree with you Tracy, businesses need to focus more on the delivered experience. Companies such as Zappos concentrate so much time and effort into this – and it shows.

  7. #7
    I subscribe to Groupon and LivingSocial. I've purchased on both sites and have found the offers very good. Groupon has some great copy writing on their site. Some sites have tediously long offers. Groupon offers are succinct and actually fun to read.

  8. #8
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    I agree Scott. Get to the point with your offers marketers!

    Scott Pochron said:
    I subscribe to Groupon and LivingSocial. I've purchased on both sites and have found the offers very good.

    Groupon has some great copy writing on their site. Some sites have tediously long offers. Groupon offers are succinct and actually fun to read.

  9. #9
    I like the business model... but another question that crops up is would you buy a website that sounds like groupon... called wroupon or something... there are some opensource projects where folks are selling Groupon.com duplicate site called Wroupon.com for <$100... Let me know what you find.. http://blancer.com/freelance-projects/109320/groupon-and-yipit-wordpress-clone/ Visit this link to find out more about what I just mentioned...

  10. #10
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    Hey South Florida locals.....Get the Groupon story first hand at the next South Florida Interactive Marketing Association's monthly meeting. Groupon will be on hand to talk about their meteoric rise to fame and their plans for the future... More details at www.sfima.com

  11. #11
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    Some interesting statistics about Groupon and other Daily Deal sites:


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