

Groupon is in trouble - jaya
http://read.bi/qhdwrP

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moses1400
Here is the original article so you don't have to visit the site that scraped
it.
[http://hosted.ap.org/dynamic/stories/U/US_GROUPON_IPO?SITE=L...](http://hosted.ap.org/dynamic/stories/U/US_GROUPON_IPO?SITE=LABAT&SECTION=BUSINESS&TEMPLATE=DEFAULT&CTIME=2011-10-21-18-12-22)

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metel
_"Most of the deals are for female-centric services like spas and nails ... I
typically delete it each day now without opening the email."_

So true. I ended up unsubscribing from the multiple daily emails from Groupon.
I did actually buy one, but the offer was forwarded to me by a friend.

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thomasgerbe
The study mentioned in the article that I submitted a while back:

<http://arxiv.org/abs/1109.1530>

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icki
The problem that Groupon has to overcome is making a sustainable business out
of an unsustainable marketing model. In reality, daily deals aren't allowing
brands to develop deeper, more engaging business to customer relationships.

However, with the proliferation of viral media and marketing and an
increasingly social internet, they may find a niche of companies that truly
benefit from the products Groupon offers.

~~~
weaponofchoice
_In reality, daily deals aren't allowing brands to develop deeper, more
engaging business to customer relationships._ Couldn't agree more. Businesses
need to pursue metrics around customer-lifetime-value with a vengeance. Once
they do, they'll realize non-incentivized campaigns convert better.

The Groupon trend reminds me about this anecdote from 'Switch' (by the Heath
brothers), about how given a larger bucket of stale popcorn, the audience
always ate more. I know of folks who now find it painful to buy something
(services, food etc.) at full price. The implications are immense -- there's
been a permanent & massive shift in consumer behavior. Also, there's tons of
folks starting small businesses increasingly, to keep re-fueling the groupon's
of the world.

Over time, I'm pretty certain this'll be the result:
[http://www.pcadvisor.co.uk/news/internet/3311077/groupon-
liv...](http://www.pcadvisor.co.uk/news/internet/3311077/groupon-livingsocial-
caught-inflating-deal-values/)

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pitdesi
Counterpoint: <http://www.businessinsider.com/groupon-analysis-2011-10?op=1>

A note on this from a wildly successful hedge fund manager friend of mine -

"In my mind, there is very little fundamentally concerning here - sure, growth
is slowing and conversion stats slowing but all the negative hype looks
massively overblown by startup techies who don't understand
retail/couponing/restaurant businesses. Based on metrics, Groupon is still a
phenomenal business that is growing rapidly"

~~~
panacea
"a wildly successful hedge fund manager friend of mine"

A very important and extremely wise sage for our times, no doubt...

