What really caught my attention was the news making the rounds that Groupon had turned down Google’s $6 Billion offer. This barely two-and-a-half year old company had the audacity to challenge the search engine giant. Are you wondering what the confidence behind such audacity is? Well, a close look at the company’s progress in its short span of existence will answer your questions. It is not just impressive but also very enlightening. One can definitely learn a lesson or two on e-commerce from Groupon. No, I did not have the SuperBowl Ad Debacle in mind. What I really want to ponder is how did Andrew Mason turn humble coupons into a lucrative business?
The power of going social with your business
One of the smartest moves any business can make right now is go social. The importance of social media cannot be underestimated in the present times. Groupon understood this and implemented it. On Groupon, one can increase one’s chances of getting a great offer by sharing the and the brand with one’s online contacts through various social avenues.
Establishing credibility through real value
Groupon has to approve of the deal proposed by the retailer based on its own perception of the real value of the offer. Once Groupon is satisfied, it positions the offer and writes promotional copy for the retailer. Groupon chooses offers which are credible and then promotes them. E-commerce marketers need to provide real value for their success.
Creating excitement among the customers
Groupon, very cleverly, engages its customers in a dialogue about the value of the product by using the price. This conversation is aimed at creating excitement among the customers about the service or the product.
Customer Relationships- Groupon’s real strength
One-time sales or an everlasting customer relationship- what would you prefer? Groupon makes efforts to build a reliable relationship with its customers by maintaining a huge email list. The subscribers trust the company to provide them with the best offers in the region. Quality service and customer relationship is what makes Groupon a hit with the subscribers.
Follow KISS- Keep It Simple, Silly
When you visit the site, you will find it absolutely simple and user friendly. The customer is not bogged down by too many activities. He is provided with just a few actions like receiving deals through mails, connecting via Facebook, viewing the latest deals, joining the friend referral scheme etc.
Simple idea, cool presentation
A simple idea like coupons is fetching millions for Groupon. One needs to understand the need of the market and then introduce it in the coolest possible way. Know the pulse of the consumer and work towards providing it in a novel way.
Smart marketing goes a long way
Groupon makes it a point to market itself smartly. It works with big brands which adds market value to its own brand. It often invests in channels which are tied to its own strategy of sharing.