Personalized Deals Coming to Groupon

Group-buying discount site Groupon is getting personal. Instead of offering one and only one daily deal to members in a given city, the site will select from a handful of deals and send you one you’re most likely to actually want.

In a recent interview, Groupon CEO Andrew Mason explained the change:

What it means is that two different people living in the same city might not receive the same deal. We have an algorithm that looks at everything – from your location to gender, buying history, personal preferences – and picks out the deal that’s most relevant to you.

The biggest thing we heard from our customers is, “stop sending me mani-pedi deals” from our male customers, (and) from our female customers, “stop sending me paintball deals.”

Come to think of it, I don’t know that many people whose dream day consists of a morning in the spa followed by an afternoon of paintball. So this seems like a smart business move for Groupon.

Related:
Q&A: Groupon.com Founder Andrew Mason

Related Topics: Andrew Mason, group buying, Groupon, Internet, Smart Spending
  • http://www.lifesta.com Eran Davidov

    Assuming a good personalization engine (I think Groupon hired someone from Netflix for this), this could greatly accelerate consumer use – get themarket to saturation faster. It’s a nice way of dealing with all the Groupon clones that are popping up: if Groupon serves me as a vertical, I won’t need a separate clone as my vertical. But I’m still waiting for the guy-oriented daily deal vertical to show up.
    It also creates more unused coupons out in consumer hands, making a marketplace like http://www.lifesta.com (I’m affiliated) an ideal place for groupon die-hards to sell their excess merchandise and expand the reach of groupon-type deals to those who don’t like the 24-hour urgency model.

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