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#1 iamlost


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Posted 11 May 2011 - 09:07 PM

There are two main visions of 'coupons':
* the traditional:
-- the woman in the grocery checkout with a fistful (or box of carefully labelled and filed) of cut/torn out print coupons.
-- the 'occasion' card containing a print gift certificate.

* the modern:
-- Groupon
-- gift (fixed amount debit) cards.

Once Groupon turned down 6-billion with a 'b' dollars they, and their business model, became the flavour of the moment. How long a moment is yet to be determined, however most of the media noise has been positive, even glowing.

As someone who has built up a reasonable revenue stream via coupons and gift c/c's as ad/af adjuncts I know something about the statistical underpinnings that make an offering viable. Which helped me recognise noise where others saw signals.

This is NOT saying that Groupon or similar service will fade or fail. It is saying that many/most of the writers are parroting or paraphrasing what they have been told rather than researching or investigating on their own.

Until now.
Perhaps - but never underestimate the staying power of rainbows and unicorns.

Because of Felix Salmon or, rather, because of his blog post Grouponomics, Reuters, 04-May-2011. I don't follow his writing and only read it because I do follow Kaiser Fung. My take was that I had read similar by others, which makes the following responses interesting on several levels...

On 06-May-2011, Kaiser Fung wrote Grouponomics, and the power of counterfactual thinking

On 11-May-2011, Megan McArdle wrote Why Does Groupon Work? and Discriminatory Pricing in The Atlantic.

No, I'm not going to extract bits for the skimmers out there. If you are interested go read.

As I mentioned earlier I have no idea how Groupon or competitors will fare. I do know that coupons et al have magical properties that can, as part of a marketing strategy pay enormous dividends and that, except for specialist sites, webdevs are oblivious to the revenue torrent.

Anyone seriously interested in learning more?

#2 A.N.Onym


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Posted 11 May 2011 - 11:18 PM

The way to motivate massive groups of people to engage in wild bursts of buying my stuff? Yes, please!

IMHO, the groupon thing can work, but it requires work from the part of the business to accomodate the crowd that relies on coupons. Provide offerings for groups, easier ways for the groups to get the products via coupons, incorporating coupon discounts into pricing, etc. Probably, that few do this is what you mean by webdevs being ignorant to the notion?

Though one article does mention that it's not helpful for businesses with repeat customers, but it's excellent for bringing in new customers (the latter moment interests me moderately). I wonder if groupon can work for repeat customers, who want to buy new things, but are reluctant to try them out. Then again, maybe it's worth marketing for the people, who do want to buy your stuff altogether (ie, 1000 fans, etc) and ignore the "maybe, maybe not" crowd, especially that manufacturing/marketing and selling costs a lot and you are better off selling to people, who would like to buy from you, rather than not.

Thanks for bringing this up :emo_gavel:

Edited by A.N.Onym, 11 May 2011 - 11:26 PM.

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