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Benjamin Rohé  //  passionate entrepreneur, technology junky,
1. FC Kaiserslautern fanatic, Apple and (good) Espresso fan
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May 17 / 1:26am

groupon+citydeal and what it means

Well, who hasn't seen this coming - sooner or later, at least. You clone owners out there - confess: you would have loved to be Citydeal these days. Don't complain on their practices and attitudes.

Nevertheless, I have serious doubts on the sustainability and long-term revenue potential with the so far acquired customers. With high loss / huge CPA deals and low-cost products such as 1 EUR McDonalds meals, a respectful growth has been achieved during the last 5 months. But is this the average consumer a Restaurant / Spa really wants? Is this the returning "big spender" who will boost the long term business for the business owners? I doubt that.

But now it's on the team to proof it's able to convert these bargain hunters into valuable customers. I often compare this with an offering EasyJet came up with once: you've gotten the possibility to access club lounges on some airports if you where flying EasyJet for just as little as some GBP extra. In the end, good paying customers run away from the Lounges because of the overwhelming amount of Low-Budget Tourists / Travelers devastating the Lounges.

This example might push it to far but how do you make an EasyJet customer a paying Business Class Traveler? Convince me! Proof it! I'll be happy to revise my opinion.

 

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