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If the cost of acquiring an active user (signup + purchase) is close to $10 per user on other marketing channels, why is this promotion a bad idea? Seems like
by minouye 16y ago
If the cost of acquiring an active user (signup + purchase) is close to $10 per user on other marketing channels, why is this promotion a bad idea?
Seems like a pretty creative move if they have the excess marketing spend. I've seen a ridiculous amount of LivingSocial ads on Facebook, Google, etc., etc. and the deal today was what made me finally sign-up (I've been using Groupon for a while). Yeah, that's anecdotal, but I wouldn't be surprised if the promotion makes sense when they look at the LTV of the new users they get today.
- zach 16y agoI'm not saying it's a bad idea. It's a good idea but it is from the late-90's playbook of user-acquisition desperation, which is perhaps concerning. It's more expensive than $10 per new user since all existing users also get the deal, though. I also signed up after hearing about it and I never joined either. It's going to be interesting to see how wild this gets. Not that Groupon will retort, just in how high these numbers will go by tomorrow morning.