Groupon Leaps Into Local Customer Segmentation

This is my second post on Groupon's market segmentation strategy. Read the first one here.

One Giant Change
Groupon made a big change recently: Within each city it serves, the company is now using customer addresses to offer different "deals of the day" on its website and through its emails.

On July 13th, 2010, Groupon sent its Chicagoland customers one of four different emails that each contained a unique deal of the day (three of the emails appear on the right). The deals were for organizations located in Naperville, Long Grove, Gilman, and Chicago. The corresponding side deal of the day and newly-created "deals nearby" in each email comprised the three other deals. I received the offer for the establishment in Naperville because that's where I live. My co-workers received the other offers via email based on where they live.

The Importance of This Change
This marks a noticeable shift in the way Groupon has done business up to this point and it shows that as the company builds its customer database, it will continue to find ways to leverage customer data to provide its users with more relevant deals that will lead to a more profitable business model.

I predict that the company will soon begin offering customized deals based on user preferences and past purchases in addition to their location, as those metrics are the most valuable ones that their database holds. Groupon has a great future ahead of it because the company is leveraging cutting-edge technology and combining it with classic marketing segmentation and targeting strategies.

Add This To Your To-Do List

Let's keep an eye on Groupon in the upcoming months. I anticipate that we're witnessing the beginning of what will become a great case for using technology to form differentiated customer segments in order to simultaneously boost customer satisfaction and profits. Let me know if you notice any changes in your Groupon experience over the next few weeks and I'll post your stories here.

There's never a lack of ideas

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