I know that you like a good deal. Everybody does, especially nowadays – we are all trying to save a couple of bucks if we can. Having said that, you have probably heard (and used) at least one website like Groupon. The idea is simple: if enough users commit to buying something, a big discount will be offered.
This is supposed to create a win-win situation: the consumers get discounts, the company gets future customers. Unfortunately, the plan has flaws that have become apparent after some time in use. You, as the consumer, get spammed with emails every day/week and most of them have offers you are not (currently) interested in. For example, I do not need a massage every week, but I still get offered a deal a couple of times a week. So what do I, the consumer, do? I started deleting the emails without reading them or I unsubcribed.
For a business, this means the redemption rate of the offer is very low. According to The Metropreneur Columbus, redemtion rate is 0.001 percent. Also, Groupon websites are forcing you to offer a big discount, even when it might not work you. Do you own a restaurant? You might want to offer a 30% discount on Thursday, but not on Friday. Well, with Groupon you can not exactly pick when the customer will decide to redeem your offer.
The Anti-Groupon C2B Business Model
OffersBy.ME is a website that markets itself as “The Anti-Groupon C2B Business Model” (quoted from their Angel page), and that it is. The application gives more control to the business and the users. Companies can now decide exactly what they want to offer and for how long and consumers only see the offers that they are interested it.
There are downsides to using this model, of course. The site/app does involve a more involved sign-up process, and redemption only takes place via mobile devices. Also, unless you are from Columbus, Ohio (I’m not), you will not be able to use the service. Offersby.ME has an expansion planned out, so hopefully more people get to try it out soon.
This new model was created by Adam Goldberg, the ex-Oracle, ex-Google entrepreneur and ClearSaleing co-founder after a lot of research. As a result, OffersBy.ME gives businesses better precision, a cheaper alternative, more control, better brand perception and analytics. TechCrunch covered this analysis very well, so if you are interested, we invite you to read more about it there!