The Customer LifeTime Value (CLTV) of Groupon

The Customer LifeTime Value (CLTV) of Groupon

Let’s first look the generic model of the customer lifecycle in the image above, from left to right. In general, a company is trying to get the interest of a group of prospect with a specifi marketing offer. Only a portion of these prospects becomes interested...

Groupon value: modeling the NPV of a merchant deal

In the post Il Customer LifeTime Value (CLTV) dei Grouponers we  identified the drivers to generate profitable Groupon offers by means of  the Customer Lifetime Value (CLTV) formula. Normally  CLTV measures the effect of a brand new marketing action to a specific...
Groupon business model canvas

Groupon business model canvas

We identified the core elements describing a business model in this post: we now apply the methodology to Groupon,  so far analyzed only from the merchants’ point of view (1,2,3). Groupon business model is not “pure” anymore: Groupon has begun to...
Does Groupon create value to merchants?

Does Groupon create value to merchants?

Offers Groupon launched by traders produce substantial losses if poorly designed. The powerful advertising through Groupon lets you expand the customer base, but can destroy the profits if a trader were to launch an offer without thinking about the determinants of...