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weak analysis. Here's why Groupon works: data compression. A groupon is a signal compressing all of the economic data in an entire city into a single very best

weak analysis. Here's why Groupon works: data compression. A groupon is a signal compressing all of the economic data in an entire city into a single very best offer, at a rate of one per day. Consumers are overloaded with information and seek simplification, the value derived is a function of the ratio of compression. Here's how Groupon can fail: they start offering more than one coupon per day. Anything that increases the perceived noise/signal ratio in crowded inboxes.

jaxn 16y ago
Actually, that is how Groupon succeeds. Well, more deals in an area without an individual subscriber receiving too many deals. Targeted deals based on real-time inputs (weather, slow day in the business, new story about a competitor, etc). Add in hyper-local targeting and enough automation and you have the holy grail of local commerce.
- davidhollander 16y ago
  >without an individual subscriber receiving too many deals. Correct. 1 refers to the rate per individual inbox that was entirely essential for their initial growth and traction. Total volume and market segmentation > 1 ... is a no brainer for any business. While they can now afford to alienate and loose businessmen and others with low inbox noise tolerance, limiting the bandwidth they consume in each individual's inbox is still their weakest link and one of the only ways for them to actually loose subscribers.
- 27182818284 16y ago
  Urban sprawl has connected the city where I spend my day with the place where I spend the evening. I"m not the only one either as many make the short commute. It would be nice to get an email from Groupon with both daily deals in a single email, if I choose.
robryan 16y ago
What they can do though is further segment areas if they are easily filling deals, so instead of offering you more than 1 deal a day in your city they could break you city up into multiple areas and offer one deal to each.
klous 16y ago
yipit is a good example of company working off this idea, by compressing all of the daily deals relevant to you in your area into a single email.

jaxn 16y ago

Actually, that is how Groupon succeeds. Well, more deals in an area without an individual subscriber receiving too many deals. Targeted deals based on real-time inputs (weather, slow day in the business, new story about a competitor, etc). Add in hyper-local targeting and enough automation and you have the holy grail of local commerce.

davidhollander 16y ago
>without an individual subscriber receiving too many deals. Correct. 1 refers to the rate per individual inbox that was entirely essential for their initial growth and traction. Total volume and market segmentation > 1 ... is a no brainer for any business. While they can now afford to alienate and loose businessmen and others with low inbox noise tolerance, limiting the bandwidth they consume in each individual's inbox is still their weakest link and one of the only ways for them to actually loose subscribers.
27182818284 16y ago
Urban sprawl has connected the city where I spend my day with the place where I spend the evening. I"m not the only one either as many make the short commute. It would be nice to get an email from Groupon with both daily deals in a single email, if I choose.

robryan 16y ago

What they can do though is further segment areas if they are easily filling deals, so instead of offering you more than 1 deal a day in your city they could break you city up into multiple areas and offer one deal to each.

klous 16y ago

yipit is a good example of company working off this idea, by compressing all of the daily deals relevant to you in your area into a single email.