Boston, MA 12/26/2013 (wallstreetpr) – As much as Groupon Inc (NASDAQ:GRPN) is seen making efforts and breaking new grounds to establish itself as an important ecommerce platform, the company still has customer perception issues to deal with. Customer perception of the company is still lagging and this is a view shared by many analysts studying the stock. Further, even the company’s CEO Mr. Eric Lefkoksky recently admitted to this.
The perception
It is hoped that this perception challenge would be short lived and that as Groupon Inc (NASDAQ:GRPN) expands the breadth, depth and quality of its deals, the problem will fix itself.
Having launched as a daily deals website with no other better way to reach customers but spam their inbox with offers for discounts and coupons, the company soon started getting onto the nerves of the customers. As a result, it acquired a negative perception as a spamming site, an image that it is now working hard to repair.
New approach
This year, Groupon Inc (NASDAQ:GRPN) is seen investing more on infrastructure by dismantling its sales approach of sending inbox messages to attracting buyers to its websites which offer better interaction and customized solutions. In the first quarterly reporting since making this change, the company noted significant increase in transaction which simply means that it is successful on this front.
Yet another thing that seems to be working better for Groupon Inc (NASDAQ:GRPN) is its mobile sales. The company achieved significant transactions through mobile platforms and is planning to make this platform its mainstream channel.
Analysts are seeing Groupon Inc (NASDAQ:GRPN) winning the game and in fact Morgan Stanley analysts are not shy to assign the stock a price target of $15 by 2015. They are of the opinion that over the past one year, the company has done a lot of image repair, brought in more retailers and enriched its deals by scope and quality. In this process, it has placed itself in right path of profitability.
The stock of Groupon Inc (NASDAQ:GRPN) is now trading at $11.84 per share after making big gains this year.
