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Kane Mantyla

Be Wary of Groupon's Latest Tactics

Be Wary of Groupon's Latest Tactics

We recently promoted with Groupon again. It was the first time in a few years. They changed their program a bit and quickly surfaced a disturbing business practice.

First, they do not promote a single business for a single day or weekend. Most who receive Groupon emails are familiar with this. They now promote several business, products, and even travel all at once. This, in and of itself is fine. When making the agreement, I noticed that our promotion didn't end within a week, or even two, but rather the promotion would continue for the duration of the promotional value (in our case 6mo) or until the cap had been reached and that they would promote on thier site, through email, and through their network.

This all sounded reasonable for a company who pioneered the daily deal and was now awash in competition. So we went for it.

The deal launched and returned fewer sales than even the new kids on the block, Amazon Local, or Google deals. This came as  a surprise, considering a whopping 1700 sold my first go with them. I wasn't expecting a ton, but oh well, there are others.

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