Should You Use Groupon To Boost Business?

Last month I bought 2 vouchers for a 2-day-1-night Batam trip from Groupon. The trip package includes accommodation at 4-stars hotel, breakfast, dinner, and ferry tickets. It was definitely a good deal I thought. So with the ticket, I went there with my friend last week.

As there were over 1000 people who bought the vouchers, everywhere we went were crowded with people from the same travel agency, XXX company. We were enjoying the trip until dinner time. As we have shopped for quite a long time in the afternoon, we are very tired and hope to have a nice dinner at the hotel. When we reach the hotel, we quickly head to the restaurant.

The restaurant has around 60 seats but there were around 100 customers waiting for it. There was no waiter welcoming us, ushering us to the seats and taking order from us as all the waiters went to the kitchen to help. We have waited 15 minutes to get a seat. After that we went to the kitchen to tell the chef what we wanted. We were expecting the hotel workers to bring us the food. But after waiting for around half an hour, we realized that there was no waiter serving food and customers begin to get the food on their own from the kitchen. So we did the same thing too. The food which is chicken chop was only 90% cooked but I have no choice but to swallowed it as I was very hungry.

That was the worst experience that I have ever had and I promised myself not to get any service from XXX company anymore in the future. This is how  Groupon ruined my impression of a company.

In my opinion, Groupon is not suitable for all companies. Proper consideration should be made before you decide to implement Groupon discounts to market your product.

Groupon is only suitable for your company, if:

1)  You are willing to replace your customer base with one-time-only coupon holders for the entire time they’re valid.

2) You are willing to trade in loyal customers for customers who are loyal to groupon, and will probably hunt for the next deal once yours is over.

3) You are willing to sacrifice some brand loyalty for mass promotion

 

 

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  1. daniel Reply June 15, 2011 at 12:09 pm

    yeiks that’s a bad experience … I wrote an article on Groupon that might interest you: http://www.social-brand-value.com/2011/06/15/groupon-destroyes-your-business/