PART 1 OF A TWO-PART SERIES ON GROUPON: Groupon: Overhyped and Little Understood

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TripAdvisor shows otherwise. If you search “zip line groupon” on TripAdvisor, you’ll find 271 reviews. Out of a sampling of 144 of those reviews, 59% received five stars. Only 5% received 1 star!

The 5- and 4-star reviews make up nearly 80% of the reviews.

You might be thinking, “Wow, I guess Groupon customers aren’t all that bad for my online reputation after all. But the nerve of anyone who leaves 2-star and 1-star reviews after getting such a good deal in the first place!”

Well, let’s consider some more data.

It’s Not Me, It’s Groupon

See those 1-star reviews in our sample above? Let’s look a little closer at the businesses behind those reviews, shall we?

It turns out that by and large, Groupon reviewers don’t give 1-star reviews to businesses that are doing well on TripAdvisor.

Take a look at the column on the left. Based on a baseline sample of 41 zip lines from Xola, zip lines receive an average of 124 reviews overall, or nearly three times the average number in the left column. Moreover, 5-star ratings represent 86 percent of the average zip line’s reviews. Only 44 percent of reviews for companies that received 1-star Groupon reviews, however, are 5 stars.

Groupon customers, therefore, reserve the worst TripAdvisor ratings to zip lines that are already below-average in the industry. The best reviews from Groupon customers go to companies that are clearly doing something right.

This data also dispels the stereotype that only “failing businesses” use Groupon. I dare you to point out a failing zip line or adventure park that has an average of 445 reviews and 4.7 stars on TripAdvisor.

If you get anything from this article, let it be this: if you’d like to know whether featuring a Groupon deal might affect your brand, look no further than your current TripAdvisor profile.

Fact Over Fiction

Up until now, many zip line and adventure park operators have relied on anecdotes to form business decisions about Groupon. I know how powerful these horror stories can be, especially with your business at stake.

But that’s exactly why we need data-backed insights rather than hearsay to accurately assess risk.

As it turns out, Groupon is probably not as “evil” as you’ve thought. But is it necessary for your zip line or adventure park? In Part II we’ll explore how, and when, Groupon can be good—or bad—for business.

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About Author

Julia Barrero is a contributing columnist for Adventure Park Insider and the head of marketing at Xola, the booking and marketing software that zip lines, adventure parks, and other tour operators. Julia is also the lead writer behind Xola University, a business and marketing blog for tour industry professionals. She claims to have a writer's heart and a scientist's brain, which makes her a natural marketer. She specializes in data analysis for tour and activity companies. Through her blog posts, she hopes to turn tour operators everywhere into Jedi Marketing Masters.

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