If you haven't yet heard of Groupon, think of it as the lovechild of facebook and the recession. Groupon a) has 40 million users, b) is a two-year-old company, c) just turned down a 5+ billion dollar buy-out offer from Google, d) all of the above.
D, all of the above. Groupon's 40 million members (up from 400,000 at the end of 2008), get an email every morning telling them about a "daily deal" – in effect, a coupon that's available for a product or service in their area. Anyone who wants the deal signs up for it, and when a given number of people have signed up (the number is set by the merchant), the deal is a "go," and everyone who expressed interest gets the deal.
I find this fascinating for a number of reasons. First, it's such a great, simple business model: Use the power of the internet/social media to provide a fun and easy-to-use service where the user wins (Groupon says it has saved members over $800 million dollars so far); the merchant wins (they get a simple, extremely targeted and high-impact way to use their marketing dollars); and Groupon wins (I'd suggest that anyone who feels capable of turning down $5 billion in Google-dollars is doing pretty well).
The other thing that really appeals to me about this, though, is the human element. Groupon employees really seem to feel passionate about what they're doing and how they're doing it. They're excited about the win-win-win dynamic; they're pleased to be giving people a way to save money that also benefits local businesses. And they truly believe that a big part of their success comes from the fun, even zany tone of the site and the fact that they feel personally connected to their members. I think they're right.
Groupon is compelling only partly because the deals are good and continuous; it also has personality. You feel like it's your most interesting, funny friend telling you about a great new thing to try. Groupon brags about how many writers they have on staff, and how they let them write pretty much whatever they want. You can tell that the folks at Groupon are having a great time, and you feel invited to be a part of their tribe. (They encourage you to upload a profile picture, and invite you to tell them more about your preferences so they can better target the deals they send you. You can even join discussions about deals.)
Almost 30 years ago John Naisbitt coined the phrase "high tech high touch" to describe the abiding need we humans seem to have for connection with others, even as technology makes it increasingly possible to live without it. Groupon is a great example of the sweet spot at the intersection of 'tech' and 'touch'; a business made feasible by the new power of technology is made uniquely appealing by the ancient power of community and playfulness.
Thanks to Erika Andersen / Blogs Forbes
http://blogs.forbes.com/erikaandersen/2011/01/07/groupon-getting-it-right/
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