How to Use Groupon Without Losing an Arm

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Tsipora
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Re: 102,000 cupcakes
Tsipora   11/23/2011 10:31:56 PM
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It's not so much about Groupon.  It the deep discount - 75 percent! that drove so many orders.   They should have run a price sensitivity test before discounting 75 percent.

Mitch Wagner
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Re: 102,000 cupcakes
Mitch Wagner   11/22/2011 8:13:46 PM
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Cupcake denial?! What is American business coming to?!

Ariella
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Re: 102,000 cupcakes
Ariella   11/22/2011 5:12:31 PM
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That could be a real problem: having demand that exceeds your supply. In reasearching one of the businesses I'm writing about, I saw a complaint that the order for cupcakes there -- not even for a Groupon offer -- was cancelled and refunded rather than filled. The person who placed the order was upset; the business simply did not have enough ingredients on hand to fill that particular order.

smkinoshita
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Re: 102,000 cupcakes
smkinoshita   11/22/2011 3:39:42 PM
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That's my issue with Groupon.  We were unable to cap our event either, which wouldn't have been a problem if it weren't for the fact that it also ran much longer than we anticipated. 

Mitch Wagner
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102,000 cupcakes
Mitch Wagner   11/22/2011 2:58:13 PM
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A London bakery was swamped by demand for its Groupon offer. She had to make 102,000 cupcakes. 

smkinoshita
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Re: Groupon
smkinoshita   11/22/2011 2:45:19 PM
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Agreed impactnow, but sometimes even a strategy can fall flat if the business has some issues that weren't apparent until after an influex of customers.

Still -- I agree whole-heartedly.  If the business doesn't attempt some sort of follow-up then the flash deal's chances of decent ROI really drop.

impactnow
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Evangelist
Groupon
impactnow   11/22/2011 11:53:10 AM
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There seems to be a love hate relationship with daily deals and those that use them because of the lack of strategy. In the past year I have only had one merchant that asked for my email or offered me an incentive to come back. Most recently I had a merchant that was just rude when I presented my groupon---too bad the cupcakes were great the attitude made me less likely to return. Very short sighted on their part they should have offered me a coupon for filling in my email address that would have been much more strategic.

Mitch Wagner
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Re: Groupon
Mitch Wagner   11/21/2011 9:56:32 PM
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Then you get into rewards for tweeting, liking, and so on, which is dicey in its own right. 

smkinoshita
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Re: Groupon
smkinoshita   11/21/2011 3:59:57 PM
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Good point Mitch, although determining if people will talk about you can be tricky.  That's why the follow-up shouldn't just focus on getting people back but also to get them to talk.  Markters have been working on that last one for ages.

Mitch Wagner
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Re: Groupon
Mitch Wagner   11/21/2011 3:21:52 PM
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smkinoshita - Another bit of homework businesses need to do before using a Flash deal: See if the local population of consumers is flash-deal-friendly and will spread the word about your brand if they have a good experience.

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