Groupon Sales Drop by 50%!

Bill Tancer, a research manager wrote the following blog post that has peaked my interest. 

Is it any surprise that this crazy discount giant could continue indefinently? Either through copy-cat services, and the growth of their primary compeditor Living Social (which is up 27%) or what retail analysts are calling 'discount fatigue' the writing is on the wall - marketing needs to be more than just couponing. The most successful marketing revolves around customer retention.

Consumers want a reason to keep going back to a business, not just a coupon to go from one blind-date to the next. Because thats exactly what these services are doing is create nomadic consumers... seems consumers really want more than just a big discount, and those that do... do you really want them as your regular customer anyways?

 

Posted on September 12, 2011 .