The Grouponing of America

I definitely enjoy the benefits, but it is confusing to keep track of all the daily deals. (Then again, I never was the best coupon clipper either.) It will be interesting to see how this plays out...

I recently wrote this blog: Why the Independent Retailer Should Try Group Buying http://t.co/LaroLkR via @LinearRetail -Diana (Retail Real Estate Marketing Professional)

There's no doubt that these daily deal and coupon sites have changed the paradigm between consumers and brands. Finding the best deal is now top of mind for many people; brand loyalty has definitely taken a backseat, in many cases, and it's even harder for companies to build and maintain strong relationships with their customers.

So what are businesses supposed to do? They need to get back to the good ol' days where they truly know their customers. Companies definitely must listen, respond and engage their best customers and advocates and make them feel special. Instead of trying to find "influencers" to reward and do cool things with, they need to identify and reward their current customers. Also they may want to start their own daily deal sites (like Dell has) to appeal to the dealseaker types...as long as they can make the numbers work.

Too much of anything is usually bad. But more competition is good for innovation and competition and ultimately for the consumer. When the dust settles only the companies with happy users and customers will live on. Having said that you make a good point that till the air clears consumers have the pain of spending too much time to decide where to get the best deal.

My suggestion to business is to do like the airlines did. Come into our restaurant /place of business and Best deal guaranteed and offer the best coupon they have out there on the day the customer walks in. Not that easy but something to think about.

I'm with Nathan. I have no problem with discount sites like Living Social, Groupon, etc. I think the way to get the most value out of them as marketers though is to use the service to get lots of people into your store/restaurant. As Kasey said, you have to provide real value though; that's how you get them to stay. The coupon is just a tool to get them to come somewhere they may not have considered coming before. As long as it's used in that manner, I'll recommend using these services to clients. I'll never recommend it as a sustainable revenue source of course, but these have potential to be a great source for new business.

as an independent retailer who got hoodwinked and taken in by Groupon, I will just move along and refuse any offers. Now that I understand it from the retailers perspective, I will go back to my tried and true business model: be your best at all times, rely on word-of-mouth and reward your regulars from within. Let the coupon chasers keep chasing, there are not worth the trouble.

As someone who works in retail, I understand that Groupon is a marketing tool that must be wielded carefully. However, the more of these sites that pop up and the more naive business owners sign up for it without understanding how to use it wisely, I fear that we are training the public to expect discounts all of the time. This is just not a sustainable model.

Hey Mike -

Great post. For me finding the deals isn't the problem - I can scan through 40 ads for deals that don't appeal to me relatively quickly. That and frankly if I'm getting a half off deal I expect I'm going to need to get off my lazy arse and do some work. The problem is remembering which deal came from which site and therefore what app to load it in that is the problem.

An app / mobile site developer that could consolidate the deals you've already purchased (and maybe throw in a few bells and whistles (calendar reminders) so they can have some cash flow (a freemium model might work) could really lubricate the machinery of the deal (and could work both as consolidator and offeror with the right connections at the deal sites).

A business can not survive by continuously discounting their services. As you said, there's an inherent difference between value and discount.

I think a major problem and one that will continue to affect us is the fact that brands feel they need to discount to provide value. Here's a thought: don't sell yourself or your service short. Provide real value and consumers will pay. It's a proven formula of success.

Disclaimer: I am not a fan of discount sites and feel they will be gone in 3-5 years.