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Groupon Deal - Rick Steves Travel Forum
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This virtually guarantees that a business is paying for some new customers to come through the door. Sure, it may also attract some existing customers who may have already been willing to pay full price, but I think that is part of the built-in cost of attracting new customers. In traditional coupon models, the distributor of the coupon gets paid by the business customer for the distribution effort but receives no part the discount. Fads are usually dependent on a temporary shift in consumer tastes and preferences, while legitimate long term trends occur when new models take root and consumers adopt and see value in that model.
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I think the latter is the clear case with Groupon. And despite its fairly impressive ascent in a short period of time, there remains ample opportunity for continued growth.
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As Groupon establishes a presence across most local markets around the U. Consider that in a given month, just 3. Internet population visited Groupon. That still adds up to a lot of people — 6. Most web companies are more or less limited to growth within their target market, which means that even if they do an excellent job of penetrating that market, there is a natural saturation point.
For that reason, Groupon appears poised to continue to grow its customer base, though it should also be noted that dozens of new competitors BuyWithMe, DealOn, Gilt City, Tippr, HomeRun, just to name a few are swarming into the market every day trying to claim a piece of the pie.