Can Groupon Survive?

Groupon's latest results have cast doubt over the future of discount websites. There are some problems in the business model that need to be ironed out if the sites are to continue to thrive.

Daily deals sites have a problem - people are buying vouchers, but aren't using them.

Sure, this doesn't sound like much of a big deal, but as many savvy retailers will know, if the customer doesn't use your product, its unlikely they will return to your store. 

What's worse, most of these voucher have expiration dates. So if you don't use them within an allotted amount of time, then you don't see any benefit from your purchase. 

As the New York Times recently pointed out, this is just one of the problem plaguing discount website, Groupon. The company's shares fell 17 per cent after it posted its second quarter results two days ago.

The results have cast a uncertainty over the future of deals sites. What do you think, will discount sites survive?

Today's infograhic, created by Brand Karma and sourced from Our Blog, will hopefully help you make a more informed decision about the whole industry. Let us know what you think in the comments below.

 

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