The Most Successful Groupon Deal Ever
Ever wonder what Groupon’s all-time, best-selling promotion was?
Research conducted by data scientist Paul Butler reveals just that in a fascinating infographic that was published in this month’s Harvard Business Review.
According to Butler, the most successful Groupon ever was a voucher offering “$25 for $50 worth of shoes, apparel, and more at Nordstrom Rack”. The deal was offered on November 24, 2010 and was redeemable nation-wide. Roughly 623,000 people purchased the coupon, generating a total of $15.6 million (or 2.6% of Groupon’s cumulative revenue in 2010, notes Butler).
Groupon filed for its initial public offering earlier this month, and with it came criticism from Wall Street and potential investors who are suspicious of the long-term sustainability of the daily deals industry. In a letter to potential investors, Groupon’s CEO Andrew Mason said, “As with any business in a 30-month-old industry, the path to success will have twists and turns, moments of brilliance and other moments of sheer stupidity”.
Some merchants have been dissatisfied with Groupon, one calling it the "worst decision [she] ever made" as a business owner. Despite criticisms, if Groupon can formulate more deals emulating the “brilliance” of the Nordstrom Rack deal, then this is a company that needs to be taken seriously.
Check out Butler's impressive infographic here.