Groupon Inc (NASDAQ:GRPN) Algorithm in tune with Aussie market rhythm
Groupon Inc (NASDAQ:GRPN) has launched a new algorithm that will customize the list of daily deals that customers receive. This is not just a pipe dream. Technology has a way of affecting consumption and pitching the right product to the right customer is the only way of assuring marketing success. The concept itself is not a novel one. Search engines such as Google have been proffering browsing history-based ads for a long time now.
As customers gravitate more towards surfing the internet via their mobile phones, the race for the perfect technology that will allow real-time deals to be pushed to mobiles, is on.
Groupon is working in a concept that has been around for a long time and just ensuring that it gets it right. The company has introduced a new service to the Australian market. This will be fueled by a highly sophisticated computer-algorithm. This will customize customers’ “daily deals” list based on his/her personal characteristics, buying history and geographical location.
This algorithm is almost like a living entity that will evolve over time, learn more about the likes and dislikes that customers have and just gain more intelligence. Groupon is listed on NASDAQ and has a $6.2B (AUS$6.5B) share-market value. It is the number one contender in the $500M/year group buying industry in Australia. GRPN alone sells over 1M vouchers on an annual basis in the country. Despite this, the company lost some of its muscle last year but the new algorithm can change its fortunes.
Is Big Data the secret?
The company wants to surprise customers when they log into their computers for the day. The question that comes into the picture is whether Big Data is being used to feed this algorithm. The company says that this is not the case and that the only data that they are capturing is one that comes from the interaction that customers are having with the GRPN site.