Dealing with digital deals
As a tech and digital company we can get a lot of people coming through our doors with ideas similar to the theory behind Groupon, offering daily deals, vouchers and group-purchasing saving schemes. But is an idea for which Groupon is a role model bound for success?
It is no secret that Groupon has faced financial issues in recent years, there’s even an infographic dedicated to their money and accounting problems, highlighting the recent drastic drop in shares. This infographic deconstructs Groupon’s sales and refunds model showing exactly where their process is harming the business financially.
Shortly we will see whether the first has learnt from their own mistakes and be able to recover as Groupon are due to reveal a report showing the firm’s earnings in the first quarter of 2012. It has been predicted that the company has seen a growth in sales, an essential announcement in order to keep investors on board after recent slip ups and accounting errors sent many fleeing.
In such a digital-savvy, bargain-hunting environment with the majority of consumers aiming to save cash, the daily deal site might seem like a sure winner. But it is clear that you need to think carefully about every step and construct a strong, detailed business model learning from Groupon’s mistakes.