daily Diigo

daily Diigo 04/10/2011

In Uncategorized on April 10, 2011 at 2:30 pm
  • tags: Groupon

    • from class actions around the terms of its deals, state regulator cease-and-desist letters around its marketing of alcohol and the me-too business plans of 425 competitors that have flooded the marketplace.
    • Groupon keeps half the revenue, the retailer gets the other half without having spent any money up front, and the consumer gets a deal.
    • complications over accounting for sales tax: Who pays it, and on what amount–the face value or the amount that consumers paid? And who collects that 10% federal surcharge on the ubiquitous tanning-parlor deals? Says Lefkofsky, “We can’t worry about the noise that the legal system creates, and we just have to keep doing what’s right.”
    • the percentage of deal e-mails that are opened has fallen from an astounding 66% last year to a still very good 40% of late
    • Groupon’s market share, 70% at the start of the year, slid to that of its closest competitor, Amazon.com-backed LivingSocial. Across the top 20 metro areas that month both Groupon and LivingSocial generated $1 million a day from their deals, says Moran. In February Groupon generated $1.5 million a day from its deals and LivingSocial only $500,000.
    • just 20% of customers using Groupons return to a retailer for a second, nondiscounted visit. That’s a steep price to pay when selling a service for 75% off or more after commission
    • except for a Gap promotion and some others, national retailers aren’t flocking to use Groupon, appearing more inclined to replicate the process than use the company
    • That leaves mom-and-pop businesses as the addressable market.
    • “Anybody can build a mailing list, but discounts don’t mean loyalty,”

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