This week Groupon kicked off their roadshow in hopes of winning over investors for a successful IPO (initial public offering) which they need to help smooth out the turbulent waters they've been sailing through. So far they've been battling a plethora of negative publicity in the media, class action lawsuits and now they're pushing for a successful IPO at a time when the markets are in bad shape.
The presentation focuses on the untapped potential there is in local markets, how Groupon will take advantage and the financial rewards for the company in the future. CEO Andrew Mason asserted that their new platform's potential is in the trillions of dollars and that it provides consumers with twice the buying power and increased profits for merchants.
The driving force behind those claims is their "Triforce: The Foundation of Groupon" (yes, it is an intentional The Legend of Zelda reference). The basis for which is their proprietary Smart Deals system which they refer to as "the deal factory." Smart Deals is how they get the right deals in front of the correct consumers and how they tailor the type of deals in accordance to the preferences of their merchants' customers. They also claim this allows them to drive up conversion rates which translates into happier customers and increased loyalty. The Smart Deals system is fed by their lead optimizer which fuels the sales team to keep the deal factory growing. The final part of the trifecta is a new service called Groupon Now. It focuses on allowing Groupon users to get real time Groupon deals from merchants on their mobile devices as they are out and about in a particular area. Mason summarizes all this as follows, Daily Deals (customer acquisition), Groupon rewards (loyalty and retention) and Groupon Now (yield management).
Their CFO, Jason Child, tried to communicate a bright financial future despite some difficult circumstances surrounding them in the present. Find out more and watch a video of their roadshow presentation after the break.