Groupon to Decrease Marketing Expense

Groupon in its newest filing with the SEC announced plans to cut marketing spending. The cuts will only happen once it sees diminished value in marketing dollars spent verses new customers gained. Groupon is spending a lot of money currently in new customer acquisition and less in getting current subscribers actually buy their daily deal. Groupon said that it sees a few different reasons to decrease marketing expenditures like market saturation of an area.

I think it is a great idea to shift marketing efforts from customer acquisition to customer retention/repeat purchases. I know many people including myself that get Groupon emails everyday but do not buy them. I think I have bought two in the last year since I subscribed. It is not enough to simply have a lot of subscribers, Groupon needs subscribers who buy the daily deal.

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