Groupon’s new mobile-based marketing strategy has proven effective.
The company’s CEO, Eric Lefkofsky, recently announced that nearly half of all Groupon revenue now comes from purchases made on smartphones. Lefkofsky said this spike in mobile revenue leaves Groupon “uniquely positioned to lead in the world of mobile commerce,” according to Mobile Marketing Daily.
The daily-deals platform recently migrated from its original direct-email marketing model to a model where people use the Groupon mobile app to browse for deals on their phones. The app has already seen increasing success. More than 50 million people have downloaded the app, with 7.5 million downloads tallied during the second quarter alone.
With the success of the mobile app, email has subsequently taken a backseat in Groupon’s marketing campaign. Less than 40 percent of transactions were made by direct email in the second quarter.
Longer-Lasting Deals for Local Busineses
However, this seismic shift in mobile revenue doesn’t satisfy Lefkofsky. He believes his company has a long way to go in terms of mobile commerce. “Despite the fact that our apps are great for browsing deals, we still have yet to change consumer behavior such that the majority of our customers interact with Groupon in real-time on a daily basis,” he said. To do this, he wants to place an added focus on longer-lasting deals for local businesses in the marketplace instead of promoting a daily deal through email. Eventually, he predicts Groupon will redefine the local and mobile commerce landscape.
Why the focus on dominating in mobile commerce? Lefkofsky believes mobile users search and browse, make purchases and are generally engaged within the platform more often than desktop users. By targeting the mobile consumer, he hopes to capture that connectivity and turn it into revenue.
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