10 Jan

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10 Reasons Why Groupon is Terrible for Merchants

by · January 10, 2012

At Womply, we help merchants identify, engage, and reward their existing customers for their loyalty. We hear a lot about Groupon and other daily deal sites from our merchant partners. In fact, we’ve heard so much about the problems they’ve experienced that we decided share the 10 Reasons why Groupon is Terrible for Merchants. Many of these problems have been discussed elsewhere, so consider this your cheat sheet.

If you decide that daily deals are not for you, but still want to strengthen your business, we at Womply would love to speak with you. Contact us at hello@womply.com or visit womply.com/merchants to learn more about how we can help you.

10 Reasons Infographic

Discussion1 Comment

  1. George Lue says:

    A bad economy is forcing some merchants to accept terrible deals from Groupon in order to try anything to stay afloat. While it does help some of them out, I think Groupon is generally a bad idea for the majority of types of businesses out there. The trend I’m seeing in the market is that companies are focused on search as always but are increasingly focused in social media. With Twitter opening up more and more opportunities, Google+ emerging somewhat, and particularly with all of the ad units on Facebook ads and the dozens and dozens of companies listed at http://www.buyfacebookfansreviews.com there are so many choices for companies looking to build over the long haul and try different things to build up their business the right way. Groupon is a great idea, and works in some circumstances, but to me it feels like Groupon is the equivalent of a farmer eating his seed corn…a short term boost at the expense of profits over the long-term. Don’t take this as “never use Groupon”, but be extremely cautious about it and explore your other options first IMO.

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