Groupon lost $415 million in 2010. If that is not motivation enough add Groupon marketing to your plan, here is an infographic to make you both nervous and possibly excited. The impending IPO might prove to be a blessing to the owners but as there was with Amazon years ago, investors will question the potential as the deal-of-the-day offers become crowded. If the crowded marketplace does not offer enough options, you can create your own deal-of-the-day offer with special services from Chompon.
This infographic is more than just a spin about the glory of Groupon:
Research and design by Online MBA Site
When it is all said and done, the real question you ask is: "Should I deep discount my product or service and give a large chunk of the remaining value to a company which has 83 million email addresses?" In other words, should you push a button, order an ad which then is distributed automatically and may cause a large wave of people looking for one time transactions?
Take caution and proceed after deep thought before traveling down this path. Without a profit, consider the benefits when the deep discounting wave of transactions begin to roll in: Make a splash, reduce inventory or capture email addresses. Obviously, the company did not make a profit in 2010 and one must wonder the benefit of everyone concerned when giving away products at a loss.
What a great marketing test tool. What happens when you deep discount and no one responds? You will be going back to the drawing board.