Groupon, which has lost 99.4% of its value since its IPO, names a new CEO... based in Czech Republic | TechCrunch
https://techcrunch.com/2023/03/31/groupon-which-has-lost-99-4-of-its-value-since-its-ipo-names-a-new-ceo-based-in-czech-republic/
I mentioned recently how our hotel and everyone we competed with was big into Groupon an Travelzoo for a while, but when we started to track actual revenue and lifetime value of the customers that Groupon brought in, we realized it was a horrible deal.
So for a while we were running Groupon offers several times per year, but as the numbers came in, we eventually just decided to never do it again. I suspect lots of businesses found the same thing.
>lifetime value of the customers that Groupon brought in
Yeah, I read in small biz & tourism articles that they were one hit wonders. Came, used their deal, then never returned.
>> used their deal, then never returned
From the merchant's perspective, targeting cheapskates is not sustainable.
Groupon was a way for consumers to buy things / have experiences they could not normally afford and were unlikely to repeat at regular prices.
Groupon was also a way to teach consumers to distrust and feel ripped off by regular prices. Even if they could afford the "normal" price, they'd think, "If you can offer me Experience X for Extra-Low Price Y this time, how inflated and unfair is the regular asking price?" It's a bad vibe.
I'd say similar things about most coupons or special-sales promotions. As a shopper I'm thoroughly conditioned to wait for sales or watch for coupons rather than buy an item or service at full price when I first decide I want it.