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5 Interesting Observations on the Groupon Model from Academic Research

ReadWriteStart

Recent data from daily deal aggregator Yipit , shows there are now over 480. Observation 2: Spending beyond face value at redemption is not predictive of profitability. Observation 3: A larger face value & redemption duration helps attract new customers but the discount does not.

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Groupon's S-1: From Zero to Like? Billions in 30 Months ? AGILEVC

Agile VC

In addition, Groupon has a favorable cash cycle as they collect cash up front from consumers but don’t have to pay merchants for awhile (in US typically 60 days, int’l usually upon consumer redemption). The folks at Yipit did a detailed analyis of the Boston data and concluded Groupon’s model is deteriorating there.

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Knowledge

Occam's Razor

Aggregation of Marginal Gains: Recession Busting Analytics! Redemption for the Indianapolis Colts at Super Bowl XLI. Web Analytics Segmentation: Do Or Die, There Is No Try! Analyze This: 5 Rules For Awesome Impromptu Web Analysis. Web Analytics Success Measurement For Government Websites. Videos: Actionable Web Analytics Tips.

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