Groupon – Good Idea?

By Posted in - Marketing on March 6th, 2012 0 Comments

Do Group Coupon Companies Support Your Brand?

There is a  discussion to be had about the brand value of Groupon, or other Group Coupon companies such as LivingSocial, Giltcity, and more recently Daily Candy.

 

These companies sell discount vouchers for services ranging from restaurant meals, and products to hair cuts and activities.  Two year old Chicago-based Groupon is the largest player in this space who purportedly rejected a significant offer from Google last year.

The concept is simple – aggregate consumers behind a particular offer to activate the offer for everyone.  Great idea right?  Maybe or maybe not when you look at the concept through the brand POV.   The majority of the offers are for DEEP discounts, and the upside is an overabundance of new customers…which we all would love to have in this economy.  However, are these new customers your target demographic?  This to me is the debate and possibly the solution to Group Coupon offers  –  Can you match a Group Coupon offer with your target demographics?  If you can, or at least a secondary or tertiary target demographic then it maybe the tipping point to moving forward.  Several of our clients are in the upper tier market with an established brand halo, and we embarked on a mission to ensure this marketing strategy made sense for their brand(s).

 

Our conclusion was that it made sense if the Group Coupon partner was a match for your brand.  While Gilt and Daily Candy may drive a smaller audience than the Groupon juggernaut, the quality of customers that comes through to the client has greater “stickiness” to becoming a long term customer.  Great concept with the right partner. 

Best

Suz