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It was odd to see Groupon (somewhat) blamed for HomeJoy's demise. Groupon's problem for businesses is that the customer has no intention of ever coming back, t
by trimbo 11y ago
It was odd to see Groupon (somewhat) blamed for HomeJoy's demise.
Groupon's problem for businesses is that the customer has no intention of ever coming back, they just want the deal.
HomeJoy's problem, no matter how they acquire a customer (Groupon or other) is that once the vendor-customer relationship is established, there's no reason to ever involve HomeJoy again and let them take a cut.
- shostack 11y agoI found that ironic as well. Seems like every new customer acquired increases the risk of losing them more cleaners. A steep discounting through Groupon would just expedite that as it would reduce the risk/cost of trying a cleaner.