Feeds

Groupon will replace 1 in 10 sales staff to ensure growth

Repeat customers... Who needs 'em?

Boost IT visibility and business value

Groupon CEO Andrew Mason has told potential IPO investors that the company will be replacing 10 per cent of its sales staff in a push to get better deals from merchants and continue to grow.

Mason, who was talking to investors in Boston as part of the initial public offering roadshow for the daily deals site, said the company wanted to improve the quality of the deals it was offering, according to a Reuters report.

The coupon site chief exec also said that deals from new merchants make a better customer experience and there was some bias towards signing up new guys instead of hanging onto the old.

A Groupon spokesperson declined to comment.

Merchants haven't always been too complimentary about working with Groupon, with many saying they don't make any money from the advertising as it relies on them cutting their prices. And the news that existing merchant clients aren't the top priority for the site is unlikely to endear it to those customers.

But Mason is not exactly famed for keeping controversial opinions to himself, as an emailed rant about critics of the company is widely thought to be partially responsible for the postponement of the IPO.

Groupon looks like it might have a problem with repeat users, according to its latest filings to the US Securities and Exchange Commission (SEC) for the IPO.

The firm says it had around 143 million subscribers as of the end of September this year, but only 30 million of them bought coupons in the nine months to September, and only 16 million were repeat customers.

The daily deals site has already given itself a hefty discount, with its IPO currently seeking a valuation of $11.4bn compared to the $25bn it was hoping for in June, and a lack of repeat customers could affect its ability to capitalise on subscribers and make money – thereby further damaging its value.

According to the online version of its roadshow (an oddity in itself as these things are not normally conducted on the net), Groupon shares are scheduled to price around 3 November. ®

Maximizing your infrastructure through virtualization

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.