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Collapsing Revenue Metrics - Skyrocketing Costs = Groupon's Disaster (philco.squarespace.com)
23 points by philco on June 5, 2011 | hide | past | favorite | 9 comments



9,031,807 sales / 50,583,805 subscribers = 0.18 conversion rate. Not bad...


All the media backlash against Groupon is going to make it a very entertaining IPO day.


I don't understand what is Google waiting for to make an algorithm-based sef-served Groupon. Like they changed advertisement with AdWords/AdSense. They have the brand and advertising network and hundreds of millions of users.

Perhaps Google as an organization is too asperger-like and can't understand social? I don't know. But it looks like a big opportunity being lost.


I'm not sure I follow what you're saying. How can you make daily deals algorithm based? They rely on third parties (merchants) agreeing to the promotions. Anything algorithm based would have to know enough about those merchants to make coupon decisions on their behalf, and be trusted to do so. I have a hard time seeing merchants in quantity going for this.


They could use algorithms to implement a 'dating' site that matches companies to potential customers. "Hey, we can bring you 10000 university educated males who recently divorced and do not buy your stuff yet. If you offer them X, our algorithms predict 25% will buy, and 45% of them will become repeat customers."

I do not see why Google would have to include a coupon in such an offer, though. If they have the tech to do this, and, given the privacy concerns, dare to use it, they already can sell targeted ads. Coupons, IMO, only serve to attract less well-off customers, that typically are worth less.


How can you make daily deals algorithm based?

Simply ask to click a box if they agree to discount a sale price by 50%, and share the remaining 50% with Google.


They aren't waiting — watch the demo of Google Wallet / Google Offers from D9 last week:

http://allthingsd.com/video/?video_id=49011B68-9F7F-44C0-BC2...


Groupon should merge with Gilt Group and offer to both ends of the market.


What I would like to know is: has there been another time when a startup announced a huge deal, was subject to a deluge of negative opinion, and it turned out that the skeptics were right?

Let's be honest -- there's a lot of hate going around, as there tends to be when many startups go big and experience success.

I, for one, am skeptical about Groupon -- as are many here. But, in reading the comments, I am having a tough time separating the genuine skepticism from the generic hate. Both claim to be basing their opinions on rational, informed analysis.




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