Groupon and the Local Product Roadmap

Groupon mobile I haven’t paid much attention to Groupon lately. The company is releasing its Q4 2013 results today after the market’s close. Consensus expectations are that the company will report roughly $720 million in gross revenue.

The site just lost product guru Jeff Holden to Uber and many people have written off the “deals market” and Groupon with it. Groupon will survive however. It has a brand, lot of customers, advertisers and revenue.

It’s transitioning from a mostly push, email marketing platform to a comprehensive deals marketplace that includes search. In addition, the company, like Facebook and Twitter, is now increasingly mobile focused.

During its Q3 earnings call and reporting the company said, “Groupon crossed the 50% threshold in September in North American transactions occurring on mobile devices, which we believe makes us the first large-scale e-commerce company in North America that is predominantly mobile.” Globally about 40% of transactions are executed on mobile devices.

Here’s the company’s product lineup right now:

Groupon product suite

The product lineup above includes horizontal and vertical lead-gen, e-commerce/transactions and operational tools (POS). There’s also data and analytics. Loyalty’s in there too and of course multi-platform marketing.

In a broad sense this is a model of sorts for where the rest of the local service provider and directory market needs to go. I’m not arguing that it needs to emulate Groupon specifically but the diversification of services away from pure advertising or lead-gen is going to be necessary over time in my opinion.

Two questions for you:

  • What do you think is going to happen to Groupon longer term?
  • Do you agree with my thesis that local media and advertising sales channels need to get into transactions and operational support services like this?

You can follow any responses to this entry through the comments feed.

3 Responses to “Groupon and the Local Product Roadmap”

  1. Ted Paff says at

    I agree that Groupon will survive and continue to use its very profitable deals business to expand into other businesses.  There are some very smart people at Groupon working very hard to do that.  Strategically, I have no doubt that they are looking at lots of long term options to create deeper integration into their clients back-end systems.  However, as someone working to do that very thing, I can attest that it is messy and that the variability in systems and data of local businesses makes quick scaling hard.   

  2. Greg Sterling says at

    Thanks Ted. Agree. The back-end integration discussion is often neglected and one of the key execution variables

  3. Currumbin Building says at

    No doubt that having a consumer email list as big as theirs is a massive advantage for anything that they plan to do.

Leave a Reply