If you don’t know about it, here it is. My boss told me about Groupon running a competition on Facebook where once they reached 50 000 likes they would sell 30 Xboxes for R22. Sounds amazing. Basically the deal went live last night and the experience was horrible as servers displayed wrong pages and then redirected people to other pages. 32 people were alleged to have bought the Xboxes. Well done to them.
For Groupon they made a massive jump in the likes and engagement judging by the comments building up to 50 000. There was some expected negativity from the masses who were too slow. But what can Groupon look forward to?
Well there will be the expectation that they have this deal again and very soon. People have liked the page and they expect to be rewarded. And that is the problem with using a competition to directly increase likes and engagement – you create an expectation.
The real goal is to increase that organically by creating opportunities for participation that will be spread naturally. Easier said than done obviously. The basics still hold true, the flash is temporary and you want to get to a stage where the brand can survive an onslaught.
Woolworths seems to have picked itself up, dusted itself off after the Frankies dispute. The dispute still continues with Frankies having their own Facebook page and as bad as everyone felt at the time, the reality is that the Woolworths brand is still strong in our minds and the alleged moral infringement by Woolworths on the small soft drinks manufacturer does no weigh heavier than our needs.
Future for Groupon: After the Xboxes were sold out a number of people unliked the page. This morning the numbers are up again. Overall I believe they came out on top. They increase their market value and it cost them 30 Xboxes. Those clients of Groupon will be shown some out of this world figures justifying the cost of group buying and discounts. Frankly there is very little I can actually buy because I don’t know how many hot rock massages, photo shoots and pedicures I can possibly go to every month. But it works for some people.
I think it was clever of the Groupon folks. They managed to increase acquisition and engagement and they were able to increase subscribers allowing them to increase the value of their commercial offering. Very clever indeed. Well done Groupon. That’s not say that it will work for everyone. But it is a good indication of the sort of mentality required in the social media space to make people sit back and take notice.
HHP







