The Emperor’s New group bought Clothes …
if a business is hoping to lure in existing customers that it already ‘owns’ the relationship with, why should it discount its services by upwards of 50%, give half of the resulting revenue to Groupon, and let Groupon take most of the credit for the exchange? Why not simply sell such a deal themselves and keep everything?
In my opinion, answering this reveals two inconvenient truths:
Some businesses recognize that group buying isn’t about new customer acquisition. They simply want a one-off spike in revenue, margins be damned.
Others are flying blind. They know group buying is the hot thing, but they have no idea how to use it strategically and the Groupons and LivingSocials of the world have no incentive to help them figure it out.