Groupon harmful to businesses?(techcrunch.com)
techcrunch.com
Groupon harmful to businesses?
http://techcrunch.com/2011/06/09/groupon-single-worst-decision/
5 comments
Take home point is that merchant satisfaction is not a priority for Groupon. Their strategy is to try and get customers to stick. How is that going to work? Clever ad copy and ridiculous deals aren't going to keep anyone from checking out the competitor's deals. What they need to be doing is maximizing merchant satisfaction at any cost. Its the only way to win.
I still believe Goupon style coupon accelerate retailer's business in some cases. But, the current sales style of sales reps in Groupon make both their customers and Groupon itself worse. Even in tech company, telling a lie destroys themselves. Groupon should change their sales style as soon as possible.
There are some businesses that will do very well with Groupon and others that just are not a fit. That's really up to the business owner to decide whether to do a Groupon or not.
The following is a bit strongly stated, but it is my considered opinion after observing (albeit passively) for some time.
Generally speaking, businesses and the business environment thrive on a certain degree of stability and predictability. You compete, but you can count on certain fundamentals holding true enough to justify the risks you take.
Groupon seems, particularly at the small business level, to represent the antithesis of that.
Sell at a loss, because your neighbor will.
Snake oil.
The only "value added" is for Groupon itself. It represents the worst of contemporary culture.
And its founders and principals may be in the process of "checking out", just like the one-time customers they generate.
Generally speaking, businesses and the business environment thrive on a certain degree of stability and predictability. You compete, but you can count on certain fundamentals holding true enough to justify the risks you take.
Groupon seems, particularly at the small business level, to represent the antithesis of that.
Sell at a loss, because your neighbor will.
Snake oil.
The only "value added" is for Groupon itself. It represents the worst of contemporary culture.
And its founders and principals may be in the process of "checking out", just like the one-time customers they generate.