

Collapsing Revenue Metrics - Skyrocketing Costs = Groupon's Disaster - philco
http://philco.squarespace.com/philcosblog/2011/6/4/collapsing-revenue-metrics-skyrocketing-costs-groupons-disas.html

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olalonde
9,031,807 sales / 50,583,805 subscribers = 0.18 conversion rate. Not bad...

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dstein
All the media backlash against Groupon is going to make it a very entertaining
IPO day.

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alecco
I don't understand what is Google waiting for to make an algorithm-based sef-
served Groupon. Like they changed advertisement with AdWords/AdSense. They
have the brand and advertising network and hundreds of millions of users.

Perhaps Google as an organization is too asperger-like and can't understand
social? I don't know. But it looks like a big opportunity being lost.

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awj
I'm not sure I follow what you're saying. How can you make daily deals
algorithm based? They rely on third parties (merchants) agreeing to the
promotions. Anything algorithm based would have to know enough about those
merchants to make coupon decisions on their behalf, and be trusted to do so. I
have a hard time seeing merchants in quantity going for this.

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Someone
They could use algorithms to implement a 'dating' site that matches companies
to potential customers. "Hey, we can bring you 10000 university educated males
who recently divorced and do not buy your stuff yet. If you offer them X, our
algorithms predict 25% will buy, and 45% of them will become repeat
customers."

I do not see why Google would have to include a coupon in such an offer,
though. If they have the tech to do this, and, given the privacy concerns,
dare to use it, they already can sell targeted ads. Coupons, IMO, only serve
to attract less well-off customers, that typically are worth less.

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barkingcat
Groupon should merge with Gilt Group and offer to both ends of the market.

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jessedhillon
What I would like to know is: has there been another time when a startup
announced a huge deal, was subject to a deluge of negative opinion, _and it
turned out that the skeptics were right_?

Let's be honest -- there's a lot of hate going around, as there tends to be
_when many startups go big and experience success_.

I, for one, am skeptical about Groupon -- as are many here. But, in reading
the comments, I am having a tough time separating the genuine skepticism from
the generic hate. Both claim to be basing their opinions on rational, informed
analysis.

