bakedjake - 4:31 am on Apr 27, 2011 (gmt 0)
there's no way someone can afford to give away good stuff at 50%
What's your average order size?
What's your profitability on sales above the coupon amount?
What's your profit on shipping?
What's your benchmark for free shipping vs. your coupon value?
What's your unclaimed redemption rate?
What's your profit margin on product?
What's your customer acquisition cost through other channels (like Google PPC) vs. the amount of *actual* cash you're giving up with a half-price coupon ($50 in retail product value doesn't cost you $50)?
If the above is true, then the company should lower their prices, rather than run specials that tick off their full price membership.
What's the average order size difference between a new and repeat customer?
How many times per year does a repeat customer buy from you?
Would giving an "active" repeat customer an (example) effective 25% discount off average order size by way of a fixed amount groupon coupon incent them to buy just one more time during the year from you?
Can you attract previously expired customers through coupon sites as a way to win them back?
How much are you willing to pay to re-acquire a good customer?
A good business has no problem getting people at 50% off, they can skip the groupon fee.
A former moderator here, Chicago, had a saying about local data: "It's the distribution, stupid!"
The saying applies here.