How Groupon MR Fuels Smart Products and Programs by Eric Rasmussen, Groupon #CRC2014 #MRX
Live blogging from the Corporate Researchers Conference in Chicago. Any errors or bad jokes are my own.
How Groupon MR Fuels Smart Products and Programs by Eric Rasmussen, Groupon
- local deals, national brands/deals, goods, travel, luxury, medical, dental
- less than 5 years old but 51 million+ activer users, 500+ marketings, 12000 global employees
- how much of your advertising goes towards current customers, giving them a discount when they would have paid full price
- groupon gets you a completely different slice of the pie – new users, lapsed users, and still some current users, makes a lot more sense for customer acquisition
- use research as an educational tool – who and why people use groupon, as well as spreading the word
- they use existing data – demographic profiles, behavioural, external studies
- usually have 12 studies in the field at one point
- merchants need research specific to them – build business with new relevant customers, consumers want something different – it’s people who have disposable income
- people drop out of groupon because they have financial issues
- groupon is a discover engine, you can find it all on the internet but they offer a curated experience and know they’ll get a great deal, it’s dipping your toe in the water, you won’t be happy spending a lot of money on something new that you don’t like
- discovery engine – consumers see groupon as spontaneous, able to reveal hidden treasures, adventurous, introduce to new things and places i might not have otherwise found
- Saks 5th did a groupon for designer apparel, would this devalue the brand? But, data showed it improved people’s perception of the brand and only 1% made them feel more negative towards the brand. 8 out of 10 people were incremental. only 15% would have bout the product there anyways. many people brought someone with them who subsequently bought something too – average spend was around $150.
- Gaming example – why would a game company need groupon? profile doesn’t fit a more female groupon audience. these people were buying it for a gift
- Travel example – people no longer go a physical travel agency, they just go to Expedia. hotels are now commoditized because they are in a list with every other hotel and people look for the price. Groupon promotes individual hotels in specific areas. People use the websites for price comparisons. People use groupon to find interesting new places. Groupon ended up booking vacations in places that people wouldn’t have gone to otherwise.
- Gnome project – they track satisfaction very closely. Groupon merchants are more satisfied with groupon than other services and then consumers are even more satisfied, right up there with apple. Realized that people who were tracking their groupon ROI were more satisfied than people who weren’t tracking ROI. Decided to share this knowledge with their merchants. Created a tablet just for merchants with seamless redemptions, all in one cash register, campaign management tools, feedback tracking. Gave merchants control they didn’t have before.
- marketing funnel needs to focus away from non-internet users which gets you the coveted younger crowd
- groupon builds brand impressions, over-spend, and gains lapsed users, creates repeat customers
- lessons learned
- focus on what will make a difference, ask and push back, will it be done on time?
- anticipate questions so that you have the answers, think about upcoming initiatives and be proactive,
- set timing expectations early
- think globally, use the smaller markets as test arenas