Why Groupon is Missing the Mark
I’m a member of Groupon and have been for a few weeks now, but I have to say I have come very close to unsubscribing 8 times so far (yes – I keep track of these things). If you’re not familiar with how Groupon works, never fear. It’s actually quite simple. Simple is usually good.
- Each day they feature something (in your area)cool to do at a great price. (like a hot yoga class for 10% off)
- You only get it if enough people join that day… so you have to invite your friends
- Repeat the next day, and then the next and then the next, etc.
It’s great for businesses because you get your name and brand out there. Also, there is a section for reviews so you’re able to build up your credibility. Another point for Groupon!
My beef is that with all of the options out there to be able to target their offers, they are choosing not to. From the last 10 invitations that I’ve received from Groupon, only 2 were appealing to me. So essentially – I received 8 junk emails from Groupon. I know that I signed up for the service, but as a consumer, if the message doesn’t interest me I consider it junk. Social media and the internet gives consumers (like me) the right to choose.
So, what’s the root of the issue here? I have a few suspicions:
- Groupon has made a conscious decision not to target, perhaps they think that diluting the options will allow more consumers to come across a certain brand. While this may be true, I do feel that it will result in higher unsubscribe rates.
- Not enough businesses have signed up to support the variety of demands from different tastes. According to Groupon’s CEO Andrew Mason “Interest in Groupon is so high we can only feature one out of eight businesses that contact us.” If you read more of that linked article, it makes it seem like specialization is in the works for Groupon. I just find it a little strange that it took them so long for them to start thinking about it (they’ve been around since 2008). In the world of social media that’s like a decade.
- Just haven’t gotten around to do that yet…
My magic number for Groupon is 10. If I receive 10 “junk” emails from them I’m going to unsubscribe. Usually my magic number is 3 for most places (I am a patient Canadian afterall, eh!) so Groupon must be doing something right.
If Groupon truly wants to engage me, they will offer me the options of choosing what types of offers I would like to be sent. Entertainment, restaurants, fitness, beauty, electronics, children’s apparel, etc. If Groupon respects me as a consumer, they will allow me to “opt out” of receiving email offers about Agoo’s clothing line for tots or the newest powder to treat jock itch. I would even go so far as to recommend that Groupon takes a page out of Hautelook’s book and send out a weekly teaser email about what hot deals are in store for the next week.
All in all – it’s not too late for them yet. They’ve done a great job of peaking my interest and getting me to join. Now, its up to Groupon to keep me happy by offering things that I want. PS: If you send me any more deals relating to kids that’s a dealbreaker! I don’t have any and most of those ads with kids in them freak me out.