For a company who is projected to be the fastest company to make 1 billion in profits, Groupon is the quintessential example of using social media to your advantage. Whether you have purchased a discount ticket at the Whistler Bungee Jump, or a cheap haircut from a chic downtown salon, people would be crazy not to take advantage of most of their deals. Phil Wainewright describes Groupon’s success in his article and I must agree with Phil: clearly Groupon is doing something right.
Source: www.youtube.com
Now operating in over 50 cities, how did a once-small internet site turn into a booming coupon-giant in such a short amount of time? Groupon saw a hole in the market, and went for it.
I think Groupon’s biggest advantage is the way it segments the market. It targets both local businesses that are looking to expand their consumer base, as well as deal-hunting consumers. Groupon then brings them together by offering one huge deal a day and charging a hefty premium to the business. The greatest part of Groupon’s strategy is that their consumers are nearly anyone with a credit card and internet access. This is because although Groupon is providing the same service, the benefits of these services change daily, allowing for a broad consumer market.
Why didn’t I think of doing that?
Source: www.youtube.com
I think Groupon is a brilliant idea, and it’s clear that many other people do too, as a variety of other discount-offering sites such as “Swarm Jam” and “Daily Deal” have popped up. These successful services are perfect examples of how successful it can be to harness the power of social media.
Fact: Since writing this blog post, Howard Schult, the chief executive of Starbucks has taken a seat on the Groupon Board of Directors.
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