Boston, MA 12/13/2013 (wallstreetpr) – In a surprise move, Groupon Inc (NASDAQ:GRPN) has since announced that it will move its business model to post-search engine levels. This means, the company will now move to a ‘fetch’ method of delivering its latest lists of local-deals it has brokered for its clientele.
Earlier, Groupon slaved through long and lengthy customer lists and relied on killer email-based deal-offers, in an attempt to whet the appetite of clienteles and eventually seduce them to try their prime pickling’s at prime restaurants, organic stores to innovative products and more!
Pull model, to engage and deliver
Groupon Inc (NASDAQ:GRPN) latest business model will now, much like its search engine colleague the ubiquitous Google Search, will now spew-out result sheets for the product or program or service users desire.
With this one move, Groupon has ensured that there is more conversions on each deal. Remember you would search for a service or a product only if you need it. Second, Groupon by now carriers sufficient conversion power to offer rates that are lower- than- the least- prices! All this means every search has nearly 75% to 80% conversion, in the face of lesser conversions on email-based newsletter model.
Mobile buyers to lead growth
Groupon Inc (NASDAQ:GRPN)’s CEO Eric Lefkofsky has reported that, the next phase of growth for the company will be driven by mobile-buyers. Though, these buyers were rather slow to buy the first-time, the momentum would slowly build. Besides, these buyers would prefer to buy a deal as close to the date as when they will need to use it, rather than buy ahead! Redemption of deals too would increase at higher rates, he predicted.
However, most analysts have placed a ‘buy’ on Groupon, with the likes of Wells Fargo fixing price target at $13 to $14 against its earlier $5 and $6.
