Most of the complaints from the 40% that are saying "never again" seem to have very little (if anything) to do with Groupon specifically, but rather the entire idea of advertising on a group deal/bargain site:
Poor tips, too many customers, angry customers (due to lack of product or wait time) are all potential side effects of a Groupon deal. The author of the study, Utpal Dholakia said it was almost a given:
“Because the Groupon customer base is made up of deal-seekers and bargain shoppers, they might not tip as well as an average customer or be willing to purchase beyond the deal.”
This led to the finding that restaurants had the hardest time with Groupon deals, where service business such as spas and salons fared better. The 32% that said they didn’t make a profit from the program reported that customers rarely bought more than the coupon deal and few returned to the business at a later date.
It shouldn't be shocking to retailers that offering deep discounts on a popular discount site is appealing mostly to people that only buy discounted goods, but it seems that it is surprising to some.
Poor tips, too many customers, angry customers (due to lack of product or wait time) are all potential side effects of a Groupon deal. The author of the study, Utpal Dholakia said it was almost a given:
“Because the Groupon customer base is made up of deal-seekers and bargain shoppers, they might not tip as well as an average customer or be willing to purchase beyond the deal.”
This led to the finding that restaurants had the hardest time with Groupon deals, where service business such as spas and salons fared better. The 32% that said they didn’t make a profit from the program reported that customers rarely bought more than the coupon deal and few returned to the business at a later date.
It shouldn't be shocking to retailers that offering deep discounts on a popular discount site is appealing mostly to people that only buy discounted goods, but it seems that it is surprising to some.