In a recent Guardian magazine article the CEO of Groupon, Andrew Mason, explains the success of his business model.
In laymans terms the success of Groupon lies in it’s ability to breakdown the feeling of inertia in all of us when we see a special offer.
All too often in the past we have the option of becoming complacent with the ability to shop around or come back later. Now with Groupon we have the urgency of a call to action that we know is ticking away like a time bomb.
But what is really great about the Groupon guys’ vision is that this isn’t enough. The daily deal model is a stepping stone to his fulfilment of the service thanks to the technology that all of us now carry around in our pockets.
Using the GPS enabled mobile handset that is now common place (or even the basic GPRS that all mobiles have) Groupon are launching a new service in the States called Groupon Now! It’s a simple idea. Firing it up gives you just 2 options – I’m Hungry or I’m Bored. Clicking will take you either to food options or entertainment options in your close proximity.
This is nirvana for advertisers and consumers alike. Not only do advertisers reach a wider audience and still make a profit, increasing brand awareness through the by-product of word of mouth, but consumers can act on their impulses when they want to and on their own terms in real time and space.
If you had the ability to get a deal wherever you were whenever you wanted it wouldn’t you?
I think this is the future of advertising. I just wonder whether it will help us get over the discount hunting mentality that is all too common in the UK when it comes to this kind of thing, or whether we’ll discover a new motivation for exploration and the urge to do something different, and do it together.