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16 Feb

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Groupon, Group-off….Again

February 16, 2011 | By | No Comments

Once again Groupon is feeling the heat—this time for one of its featured deals. FTD recently offered a pre-Valentine’s Day Groupon deal: buy $40 of flowers for just $20. Customers who snagged the offer weren’t exactly feeling the love after they say the products offered through the Groupon deal were $20 higher than on the FTD website.

FTD President Rob Apatoff stated the retailer did not inflate their prices and it was simple confusion that caused the uproar, reports Kris Ashton from Daily Deal Media. Still, FTD credited customers the difference between the retail and the sale price.

Arun Varma, in a Socialnomics post, documents another Groupon issue: Customers who buy deals only to find the merchants relegate them to second-class status. Vendors, who are compelled to offer deals with super-thin margins to generate sales, may treat Groupon patrons differently than the regular Joe/Jane who pays full price. The result is that unsatisfied customers who use the social shopping site aren’t afraid to voice their displeasure on other social media sites, like Yelp.

Social commerce customers also use social media review sites. Not only is it a compelling case for using social media monitoring, it’s also evidence that a successful social media strategy includes ensuring an excellent customer experience—no matter what the margins are.

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