Groupon Working to Improve Both Its Image and Its Website
After a slew of public relations (PR) mishaps since it filed for its IPO, daily deal giant Groupon (NASDAQ:GRPN) is aiming for an image make-over. The company recently hired a prominent public relations executive, [1] which was a wise move given how much Groupon’s merchant fall-outs have been publicized. The company is also planning to revamp its website by incorporating user feedback on the deals it runs. [2] Both these developments would be essential in keeping Groupon’s user engagement and interest at high levels, as the company battles with the likes of LivingSocial and Google (NASDAQ:GOOG) Offers in an intensely competitive daily discount market.
See our full analysis for Groupon
‘Thumbs Up’ Feature Would Help Filter Out Unwanted Deals
The latest additions to Groupon’s site are the “thumbs up” or “thumbs down” options, which enable users to give direct feedback on the kind of deal they are getting. With consumers continuously experiencing a surge of daily deal e-mails from various companies, it is important that Groupon increases the personalization of the deals it sends out to its subscribers. In the least, it could help in retaining a subscriber to buy more Groupons, as unwanted deals would only discourage users to check these e-mails after a point of time. This user feedback, if appropriately worked on, could provide an upside to the company’s Groupons sold on a per capita basis.
We have updated our analysis for Groupon with a $12.55 price estimate. The update has been made based on our adjustments to the company’s revenue, margin, and take rate forecasts, as well as changes to the company’s net cash/debt position.
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Refer our note on why Groupon’s valuation has fluctuated significantly over the past 2 years.
Understand How a Company’s Products Impact its Stock Price at Trefis
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