The mega coupon pushing machine known as Groupon recently began a new initiative dedicated to offering time sensitive deals targeting a customer’s immediate area. Known as Groupon Now, the offers received much fanfare on their debut earlier this month in Chicago as many deals were to be had for a mere $1.
Why it’s a smart move
Groupon is no dummy, and they along with the businesses that they represent know that purchasers of their deals can often forget to cash in on the offers, and this leads to easy money for both Groupon and their partner business. With quicker expiration dates found on Groupon Now, the time needed to redeem a Groupon is drastically reduced and this means more offers may go unredeemed.
With a focus on local and immediate deals, Groupon can tailor the shopping experience and the quality of offers specific to the user. Instead of relying on matching deals to a user’s interest, the company simply needs to display the available offers by location, and this proves to be an easier and potentially more beneficial shopping experience for the end user. Do I feel like eating or shopping in the area? If so, can I save a few bucks while doing so?
But will it last?
With the fanfare and abundant availability of the $1 dollar deals now subsided, time will tell whether Groupon Now will be a long term success or not. One major concern is whether the quality of deals will remain high enough to entice new customers as well as existing ones to continue buying. With constant, local and immediate deals, one has to wonder whether the time will arrive when customers are “Groupon’ed” out.
With increased usage of mobile applications, more locations, and the introduction of Groupon Now, questions remain as to what the next moves will be for the coupon powerhouse as rumors persist over an initial public offering. My guess is that we’ll see larger companies engage in Groupons (similar to those offered by Amazon, eBay and others), tickets to major sporting events, and possibly large scale concerts or theater showings. The desire to get the best deal only continues to grow with each successive offer.