7 ms·

I'm sure there's a market for what they're doing but don't forget: 1) it's a freaking coupon 2) it's ONE coupon, un-targeted, delivered to a wide audience

by angdis 16y ago

I'm sure there's a market for what they're doing but don't forget: 1) it's a freaking coupon 2) it's ONE coupon, un-targeted, delivered to a wide audience In an era where print publications are becoming extinct, of course there's going to be a growing market for ads that are delivered to a wide audience and presented in a "legit" manner (eg not spam). This is a new thing only insofar as it is now happening in electronic media rather than print.

bradfordcross 16y ago
Well said, and in far fewer words than my essay. ;-)
- netmau5 16y ago
  Bradford, I'm continually impressed on the level of insight you provide on topics outside of what I think are your core competencies. As an analytical person myself, I can see how you took supporting information and made well reasoned insights and inferences, but I'm curious as to how you laid the groundwork. You've obviously mastered researching as a general skill and not just as a means to deepen your area of expertise. I hope you will consider writing a future blog post about effective research as a topic a la your "7 Tips for Successful Self Learning".
eli 16y ago
One key difference is the retailer gets all the money up front rather than having to wait for you to actually buy something. In that sense it's more like a gift card than a coupon.
- lwhi 16y ago
  Yep. I think the reason this works is threefold; 1. Expanded (geographically targetted) reach for participating companies. 2. Increased chance of full sales conversion (via money up front) - participating companies are better off even if full conversion doesn't take place. 3. Financial incentives turn Groupon's users into a sales team.
- pchristensen 16y ago
  Not up front. Don't know if the terms are public but merchants do have to wait a little while to get the money Groupon collects.
jerf 16y ago
"it's ONE coupon, un-targeted, delivered to a wide audience" Name me the best company in the world to solve that problem with Groupon. This may not be coincidence.
- bradfordcross 16y ago
  Google thinks it is Google. I don't agree.
  - stevenj 16y ago
    Who do you think it is?
papertiger 16y ago
I wouldn't exactly call them un-targeted; the recipients have asked to receive them. Also, this is an audience that is open to using the offers as a way to get ideas for new experiences.
pchristensen 16y ago
un-targeted (Groupon employee speaking) Not true. Before you even see the first deal, there's a popover asking you to personalize your deals. You can put gender, birthday, interests, education, relationship status, etc. G knows the zip code of every person that buys a Groupon, open rates on emails sent, deals viewed, purchase history, etc.
- kerryfalk 16y ago
  The demographic information you have on the users still doesn't make them more targeted beyond the geographic segmentation. If however you're doing multiple deals per city, per day based on more than one demographic metric then it's targeted. ie. I'm a local brick-and-mortar business (I'm not) who wants to advertise to men between the ages of 25-35 in my city and only those. Then you've got a targeted play. Otherwise it isn't more targeted than the local newspaper other than your particular demographics are likely younger. It's still a shotgun approach to your entire user base in each location = not targeted. Is that what Groupon is doing? EDIT: Case in point. The owner of the beauty salon that's the current deal of the day in my city is a friend of mine. I am not her target market, yet I'm seeing the deal. That's a missed opportunity for her and you.
  - pchristensen 16y ago
    How does including "gender, birthday, interests, education, relationship status, etc. G knows the zip code of every person that buys a Groupon, open rates on emails sent, deals viewed, purchase history, etc." not make it more customized? The Deal of the Day and "Nearby Deals" are customized based on all those things I mentioned. Merchants don't get to specify because we make it simple for them and have access to a whole lot more data and resources to determine who should see their deal. It is however limited by the merchant pipeline. In Chicago, the oldest and most mature Groupon market, I always see restaurants, entertainment, or sports things, never spas or salons. Which city are you in? If it's smaller or newer to Groupon there's likely much less variety.
    - kerryfalk 16y ago

by angdis 16y ago

bradfordcross 16y ago

Well said, and in far fewer words than my essay. ;-)

netmau5 16y ago
Bradford, I'm continually impressed on the level of insight you provide on topics outside of what I think are your core competencies. As an analytical person myself, I can see how you took supporting information and made well reasoned insights and inferences, but I'm curious as to how you laid the groundwork. You've obviously mastered researching as a general skill and not just as a means to deepen your area of expertise. I hope you will consider writing a future blog post about effective research as a topic a la your "7 Tips for Successful Self Learning".

eli 16y ago

One key difference is the retailer gets all the money up front rather than having to wait for you to actually buy something. In that sense it's more like a gift card than a coupon.

lwhi 16y ago
Yep. I think the reason this works is threefold; 1. Expanded (geographically targetted) reach for participating companies. 2. Increased chance of full sales conversion (via money up front) - participating companies are better off even if full conversion doesn't take place. 3. Financial incentives turn Groupon's users into a sales team.
pchristensen 16y ago
Not up front. Don't know if the terms are public but merchants do have to wait a little while to get the money Groupon collects.

jerf 16y ago

"it's ONE coupon, un-targeted, delivered to a wide audience" Name me the best company in the world to solve that problem with Groupon. This may not be coincidence.

bradfordcross 16y ago
Google thinks it is Google. I don't agree.
- stevenj 16y ago
  Who do you think it is?

papertiger 16y ago

I wouldn't exactly call them un-targeted; the recipients have asked to receive them. Also, this is an audience that is open to using the offers as a way to get ideas for new experiences.

pchristensen 16y ago

un-targeted (Groupon employee speaking) Not true. Before you even see the first deal, there's a popover asking you to personalize your deals. You can put gender, birthday, interests, education, relationship status, etc. G knows the zip code of every person that buys a Groupon, open rates on emails sent, deals viewed, purchase history, etc.

kerryfalk 16y ago
The demographic information you have on the users still doesn't make them more targeted beyond the geographic segmentation. If however you're doing multiple deals per city, per day based on more than one demographic metric then it's targeted. ie. I'm a local brick-and-mortar business (I'm not) who wants to advertise to men between the ages of 25-35 in my city and only those. Then you've got a targeted play. Otherwise it isn't more targeted than the local newspaper other than your particular demographics are likely younger. It's still a shotgun approach to your entire user base in each location = not targeted. Is that what Groupon is doing? EDIT: Case in point. The owner of the beauty salon that's the current deal of the day in my city is a friend of mine. I am not her target market, yet I'm seeing the deal. That's a missed opportunity for her and you.
- pchristensen 16y ago
  How does including "gender, birthday, interests, education, relationship status, etc. G knows the zip code of every person that buys a Groupon, open rates on emails sent, deals viewed, purchase history, etc." not make it more customized? The Deal of the Day and "Nearby Deals" are customized based on all those things I mentioned. Merchants don't get to specify because we make it simple for them and have access to a whole lot more data and resources to determine who should see their deal. It is however limited by the merchant pipeline. In Chicago, the oldest and most mature Groupon market, I always see restaurants, entertainment, or sports things, never spas or salons. Which city are you in? If it's smaller or newer to Groupon there's likely much less variety.
  - kerryfalk 16y ago