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An article in Inc recently quotes a couple businesses that only ended up breaking even on their Groupon coupon. So the businesses are just hoping people come ba
by antidaily 17y ago
An article in Inc recently quotes a couple businesses that only ended up breaking even on their Groupon coupon. So the businesses are just hoping people come back for more with is less than guaranteed.
- phil_KartMe 17y agoExactly. How can Groupon be worth >$1B if the value proposition for businesses (that is, their growth in repeat customers over time) hasn't been proven?
- WillyF 17y agoI would think that breaking even on a Groupon would be the desired result. The point of Groupon, just like advertising, is customer acquisition. It's really all about lifetime value of a Groupon acquired customer. Companies need to track that to really judge whether Groupon is a worthwhile investment, but if you break even on the initial Groupon, then the ROI has to be positive unless your product/service is super crappy.