Groupon, like many start-ups of the 21st century, began with a unique idea. Its success came from distributing this idea using relevant technology, maintaining customer service, and consistently growing and developing its outreach. However, as with any well executed venture, other like-minded companies have begun saturating the market, leaving Groupon in a predicament that often repeats itself as industries evolve: How do you differentiate your brand from other, similar services?
Groupon has turned to several communication tactics to maintain relevancy and showcase its services. Currently holding 50 percent of the market share in the exclusive coupon and group deal vending sector, Groupon has obviously deployed a successful strategy. As its director of communications, Julie Messler, noted in PR Week, “We have so many new products, services, and features…PR is a critical arm in marketing that.”
By observing Groupon’s strategy as it continues to find success, in spite of competition from similar companies, we are able to see the raw power of a well executed brand and communication strategy. The fundamentals of Groupon’s approach can educate any company that is expanding its communications with the goal of establishing a unique brand and gaining industry clout.
What exactly can Groupon tell us about maintaining prowess in a slew of similar service providers?
Know your audience. Groupon chooses to disperse a combination of press releases and blog posts, with the majority of information being released on its blog. A blog is a more personal, friendly, and interactive platform, and because Groupon’s customer base is made up of individual consumers, this is a better way to relate to it than a formal press release. Groupon also makes an effort to steer clear of corporate-speak in its press releases, so that it is able to inform its target audience.
Social media: adjust as necessary. We recently posted on the topic of when social media is useful. Groupon follows a similar, critical mindset when it comes to social media. Instead of designing an overall social media plan, Groupon tailors its social media outreach based on the products and services they are offering, and when they are offering them. In this way, Groupon adjusts the timeliness of its social media outreach, and avoids committing to an ill-fitting plan. However, if you are operating in an industry that has a slower change rate, or a more consistent pace, a long term social media plan may be more adequate for your needs.
Use marketing to instill the usefulness of your product. Groupon’s campaigns are not designed to simply raise awareness. The goal is to promote the usefulness of its brand, and maintain its relevance to consumers. For example, they recently staged the “Live off Groupon” campaign, in which Josh Stevens received a $100,000 prize for living solely off Groupon goods for an entire year. This promoted brand awareness by showcasing Groupon’s usefulness, not by simply getting its name out there.
Companies will always jump on the bandwagon when it comes to a successful idea. When you log in to Google+ or Facebook, remember that it all started with Friendster. When you grab an iced latte from Peet’s, think of how Starbucks made corner coffee shops a trend. What determines the success of these brands is the way they separate themselves from the pack — and Groupon is showing us all how this can be done.