3 ms·

Thanks for the thoughtful comment, Jacob. That's definitely a great way to look at it.. At the very least you'll also see how many Groupon's it takes to cover

Thanks for the thoughtful comment, Jacob. That's definitely a great way to look at it.. At the very least you'll also see how many Groupon's it takes to cover and then better understand what that % repeat number needs to be. Like you, I would assume the number is positive, but I don't think it will ever be negative as margins will continue to deteriorate (gross margins from Groupon's perspective, that is).

imjk 15y ago
While they'll probably continue to acquire customers indefinitely for the near future, the question remains whether, once they've captured adequate market share/some sort of saturation point, they can really improve their customer retention through much better targeted deals, and perhaps, some sort of user engagement on their site. In theory, at some point when they stop acquiring customers, if they can have good user engagement and therefore retention, they'll cut out a large chunk of their costs (customer acquisition marketing) and still have their user base that draws revenue. Whether Groupon can pull this off, with ever growing competition, is the question on everyone's mind.