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Groupon vs. Living Social: Is Retention a Done Deal?

In our newest Brand Prix comparison, we test which deal site's retention strategy pays off more in the end

Rebecca Wojno
March 21 2019

Pick your deal, any deal, from a Scandinavian getaway to personalized princess pillowcases. Or maybe you’re more in the market for a good dentist. All that’s available plus thousands of other offerings on experience and deal sites like Groupon and Living Social. Just one catch: What happens when a platform provides “the best a city can offer,” with a less than impressive user experience? With over a billion deals sold, we decided to put these two brands to the test and see whether their marketing strategy is right on the money.

Welcome to Brand Prix #5!

But first, a quick reminder of what Brand Prix is all about (and another reminder to check out past Prix): Adidas vs. Nike, Target vs. WalmartBanana Republic vs. J.Crew, Gap vs. Zara

Introduction

In this series, PostFunnel will follow two competing brands to assess their customer marketing performance. For each case study, we’ll enact a customer journey with the respective brands, document every customer interaction sent to our testers, and share inputs and insights from our experience with the companies.

The Companies

Is an impersonalized bargain still worth the savings? Let’s introduce our brands:

Groupon is a global e-commerce marketplace offering goods, travel, services, and activities in 15 countries. Currently, the company is worth a grand total of 2.84 billion dollars. Dozens of categories and hundreds of offerings satisfy the spa frequenter and his adrenaline junkie cousin.

Living Social Founded in 2007, Living Social’s site mainly focuses on local travel and events. While Groupon purchased Living Social in 2016, the brand still totals 1.72M site visits and continues to operate as a business partner to sellers by offering them the ability to analyze and control their campaigns.

Methodology

This round, we gave each tester $300. They engaged with the brand for roughly six weeks on a few different platforms. The PF editorial team and marketing experts then graded the performance based on personalization, strategy, user experience, and overall engagement on all life cycle stages.

We based our analysis on metrics that speak to the data-driven marketer, moved beyond traditional tactics, and instead, approached the shopping experience from the marketer’s POV. Here are our conclusions:

Think we got it right? Or should we have picked another winner? Leave your comments below and tell us what you think, or join the discussion on Twitter and Facebook by using the #BrandPrix hashtag.

Contributors: Liz Berenholtz, Matan Block Temin

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