I’ve come across a number of cautionary advice articles geared toward Groupon clones with suggestions for their success in 2011.
One of the great successes of 2010 was the sudden rise of the daily-deals site Groupon. Its success and ease of duplication inspired countless clones trying to tap into a newly discovered, exploding market. Consequently, I’ve come across a number of cautionary advice articles geared toward these clones with suggestions for their success in 2011.
One article I found—What ‘Groupon Clones’ Can Learn from Youtube—made an example of the sites that came after Youtube, focusing on what they did or didn’t do to compete and which of their varying strategies helped them survive when others failed. Worth taking a look at.
Another article stressed at least three critical points Groupon clones need to consider going into 2011. “Consumers will get smarter,” it says, “merchants will fight back and the role of the sales force will become less prominent.”
As consumers become savvier, they also become more demanding. They will seek out or even expect quality deals that zero in on their practical needs, and if they don’t find that with you, they will promptly go elsewhere. They want a personalized experience, and, according to this article, the Groupon clones that adapt to this demand will survive, and the rest will be left behind.
Merchants are also being forced to adjust their strategies to address the losses incurred due to the invasion of “deal seekers.” One of their strategies has been to offer their own deals, and it’s projected that Groupon sites will eventually need to shift their focus to promoting more national brands as opposed to local retailers, which may be something to consider as you move forward.
Lastly, the article stresses that “local sales forces have reached a saturation point.” There are less and less merchants willing to select Groupon-like venues. These sites will need to focus on product differentiation, honing in on certain products, demographics, and markets, as the collective buying concept loses its novelty and becomes a staple.
Check out both articles for more information and have a prosperous New Year!