Groupon gets complicated
December 2nd, 2010
With the launch of groupon.com in late 2008, coupons are a thing of the past. Starting off as a simple idea by CEO Andrew Mason, Groupon has boomed into a multi-million dollar online entrepreneurial success and is available to markets worldwide. The company offers one “Groupon” deal per day, and the retailers it partners with use Groupon as a sales promotion tool, hoping to attract customers. In exchange, Groupon receives a cut (50%) from every discount purchased. Groupon’s undeniable success in the past couple years has caught the attention of Google Inc., who has made an offer to buy the company for $6 billion.
One of Groupon’s best features is it’s simplicity. The site offers one deal a day, specifically personalized to your city. Whether that deal be two-for-one dinner deals or 90% off helicopter tours, consumers are either interested that day, or find themselves leaving the site.
However, lately I have noticed changes about Groupon. An avid shopper myself, I’ll admit to receiving Groupon’s “Daily Deal” emails. One special a day is all I can handle – it keeps it simple. Now, Groupon is adding features such as the “Holiday Gift Store” on the site where the deals last longer than the traditional one-day promotions. These confuse me as there are just too many deals to look at now. As I mentioned previously, I am not afraid to shop online, and therefore I find myself falling far too hard for these – dare I say it -unnecessary deals.
The most recent change to Groupon is the unveiling of its Group Stores. Now, individual stores set up their own online specials and customers will be able to follow deals for their favourite stores by subscribing online. The company hopes that this strategy will contribute to its long-term growth. This idea scares me as I will not be able to resist a good sale from one of my favourite stores, and I already know that all the emails will only confuse me. Quite frankly, I’ll be the first to admit that I miss the simple daily deals.
Source: Will Groupon’s expansion plan appeal to fans?
UPDATE 12/04/10:
Groupon Is Said to Walk Away From Google’s $6 Billion Acquisition Offer