The Groupon Effect

The Groupon Effect
Harness the Behavior, Not the Deal
February 2012

Context

Daily deal sites have become a regular fixture in the columns of respected business publications ranging from the Wall Street Journal to the Financial
Times

What…
Is the hype about around deal sites?

Their growth in popularity with consumers has garnered frequent attention from analysts, highlighting their success only to meet it with equal skepticism With so much interest in the market, Grail Research set out to look at the business model and the ramifications that daily deal sites have had on consumer behavior
Our study evaluates the impact these sites have made on the market in order to assess how brands can harness the new customer behaviors that have emerged and incorporate them into their own marketing mix

February 2012

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Copyright © 2012 Grail Research, a division of Integreon

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What Does it Mean for the Market?
 The buzz is real: growth and user adoption has been significant with the number of US subscribers growing tenfold in less than a year

So What…
Is the impact they have had on the market?  The number of deals published are projected to grow in the near-term but the sites themselves have seen a great deal of skepticism around demonstrating that the business model is profitable

 These sites have contributed to a shift in consumer behavior and this along with advancements in technology and social media have led to new norms around how consumers buy and look for deals

 Daily deal sites themselves are primarily utilized by local businesses, with only a few larger brands attempting to leverage the channel

Now What…
Does that mean for my Brand?

 The role that daily deal sites will play in the consumer market in the future is still unclear. As technology changes and consumer preferences shift, the first player in a new market is not always the one who benefits long-term  However, this new behavior can