Deals, steals, sales and savings! Everybody loves them, especially women! My dear mom, a born shopper and a natural saver by her Asian ethnic, has a collection of mailed and collected flyer coupon in a portable zip lock bag.
Then came websites like save.ca or coupon.ca, building their business on that need everyone has, the need to feel elite from the fact that s/he was able to get THAT at a BETTER PRICE! Amidst the pool of these overlapping coupon websites, came Groupon, the only one that has gotten it right, for both its advertisers and the shoppers.
Groupon offers coupons for products and services at a reduce price and the coupon are sent or saved to the subscriber’s account to be printed off and redeemed. Unlike other websites, Groupon’s marketing focus is on unusual and unexplored offering in niche markets. It has been successfully emptying my saving account with at least three to five interesting deals each month. While there are few restaurant deals, I have been eyeing on beauty deals with massages and spas; adventure packages such as rock climbing, kayaking and boat cruising; lifestyle enhancement with teeth whitening, boot camp sessions, and festivals; and gift finds with photography sessions and theatrical events.
See it for yourself, how Groupon is one of the hottest website in 2010!
Its business model is thriving on insisting two key value propositions. What appeal to its clients are the concepts of,
1. Collective Buying Power - Only if a predetermined minimal number of discounted product or service is bought, then the deal is on and everyone saves! This reduces much risk for the retailers by having a guaranteed volume of sales making up for the lost margin.
2. Seize the Day, Get the Deal – There’s only one main deal each day, the deal of the day. This compliments the first concepts by urging the purchases to reach the tipping point so that everyone gets the deal. What it really means to the retailer being advertised is, in a matter of 24 hours, its business is promoted to thousands of Groupon subscribers, and at least a minimal of agreed upon businesses will be generated overnight!
In sum, advertising, marketing and promotions are offered to retailers at guaranteed result at risk free cost!
Let Groupon marketing tell you more:
The rationale behind Groupon`s business modeling strategized to create and deliver value to both seller and buyer is powerful yet simple. The details in Groupon’s structure and process, such as the write-up copywriting team, account managers or pricing specialists, etc, integrateably build a mutually beneficial relationship, win-win situation for all sides! I imagine that the retailers can meet with Groupon team to set an attractive pricing that prompts sales but also allow them to generate a profitable gross margin with the overall volume. The copy writers chimes in to detail conditions in the fine prints with expiry dates and redeeming policies that help retailers to streamline the committed subscribers into steady streams of business afterwards. A simple line of, “One Coupon Per Visit,” and “By Appointments only,” are all part of achieving that goal.
With its study on the demographics of the target market, Groupon economy certainly supports my claim that women love deals more! Here’s a rush of young, smart, educated, fun loving and working women who are available feeding off Groupon deals!
Groupon makes a great marketing case study for 2010. The economics of Groupon is changing consumer behaviour and increase purchasing power at this wallet-tightening period, at the same time, utilizing the available web technology, Groupon is evolving into a sophisticated market intelligence service by tracking every single activity and transaction. Finally, quantifiable marketing ROI for the doubtful business owners who cut, instead of increasing marketing budget during hard times. I can’t wait to see how this venture will unfold and turn a page in the world. Perhaps in the distant future it will own a page in the business case study at Harvard!