By Kate Spiers
What is it?
One daily deal for the masses. Register your city and check out the daily offer on food, leisure, retail. Some cracking deals to be had, based on the power of collective buying. Discounts typically around 70%, so if the deal’s what you were looking for, you’re onto a winner.
But the rub is this: The deal only comes through if enough people sign up within a specified period of time. So sharing is encouraged to boost sign-ups and allow the deal to come to fruition. If not, then the deal is off.
Why should I care?
Well, it’s potentially a game-changer. Mass action rules once again. Since launch in 2008, Groupon now operates in 140 cities across the world. But it’s the model that’s interesting:
- Marketing a deal has shifted to the consumer. They do the work in order to benefit and social sharing technology fits seamlessly into that process
- Defining principles are quality and honesty (we’ll sell you something you actually want and be transparent about the terms)
- For the businesses participating in offers, it’s a win-win. The offer only goes ahead of the necessary numbers to make it fly sign up
And where else can the model go? Well, it’s already come some way. Groupon originated via a social action site The Point, which provides a platform from which groups and individuals can find support for their cause (financial, time or otherwise). Only when the tipping point is reached are pledges called in. It’s all about collective influence plus technology.
This principle could potentially create shifts in the B2B world too, seeing greater collaboration between disparate organizations in large and complex projects, for example. In corporates, employees could gain empowerment to effect change if the powers-that-be can agree a tipping point.
Anything else I should know?
- Yelp, the local business review site, is trialling daily coupons based on their reviewed location.
- Groupon currently has over 10 million subscribers
- Josh Stevens is attempting to Live Off Groupon for a full year. No cash allowed. He started in May 2010 and if he lasts out til May 2011 he gets $100, 000.
Ever Wondered About is a new series on the Wisdom London blog, where Kate Spiers and Jill Ruthenberg aim to demystify and explore what’s shaping our social interactions. Coming up: Ning, Audioboo and PPC. Wondering about anything else? Tell us and we’ll investigate!
