Groupon’s decision to turn down Google’s $6 billion acquisition offer was one of the more interesting business stories of 2010. It certainly raised many eyebrows and got folks wondering if the giant e-coupon company known for its daily deals could sustain its phenomenal growth particularly with new competitors emerging every day.
It got us thinking about the social couponing model and the role loyalty marketing can play in ensuring that established players like Groupon, which is testing loyalty programs, can maintain and grow market share, while at the same time help start-ups create a point of differentiation.
Groupon stands apart by growing—and managing—its vast database with such speed that no single competitor has yet to become a serious threat. It has the advantage of already knowing much about its consumers. Groupon reportedly counts north of 40 million members in more than 300 markets globally and it knows the name, age and gender, residence, purchases preferences and payment methods of each of those members. It also knows that all its members are highly desirable consumers; college educated, 18 to 34 years old, with two-thirds of those consumers making $50,000 to $100,000 a year.
But with so many small social coupon companies emerging daily there is sure to be consolidation and with that will come scale and strength.
Read the three strategies that Groupon—and others—should have on its “to do” list to foster loyalty and maintain its strength against emerging competitors here.