0% Off A $3 Million Ad from Groupon!

I love Groupon.  As business models come and go, Andrew Mason, Eric Lefkofsky, Brad Keywell and the rest of the people who put this business on the map should be commended.  They have redefined what a coupon or discount does for businesses looking to grow their businesses.

Like many of you, I saw Groupon’s Super Bowl ads that sought to poke fun at traditional advocacy pitches.   Personally, I like what they did–the company is different in every way and fashion, and they attempted to step over a line that most people would not have dared to cross.  Kudos for them for trying–and for their ad agency to get them to try this positioning.

But if you’re going to try something like this, don’tcha think you should think of the ramifications BEFORE going to market?

At SMPR, if we think a client is doing something with an iota of perceived indecency, then we’ll have a plan in place to address the “what ifs.”  Inevitably, I wish I were a fly on the wall at 600 West Chicago to know if there was such a plan.

Groupon’s half-hearted attempt at an apology (if you can call it that) and Mr. Mason’s attempt at explaining the rationale behind the ads does little to address the vast number of offended people.  What should the company have done differently?

• In addition to a more “traditional” apology, get people from the company to talk with some of the offended parties. In my last post, I wrote about how Jason Fried from 37signals actually got in front of his situation by personally connecting with customers who were hurt by his company’s actions.  The only way Mason, et.al., connected with people was through the computer.  First rule of thumb, Groupon–address people as PEOPLE.  Give them credit for who they are as opposed to what they aren’t.  They ARE customers who control your cash flow; they ARE NOT a statistic.
• Insert fine print somewhere.   The ongoing banter could have been avoided if there had been a mention of the company’s social responsibility roots and causes.
• Use the assets that work for them. Groupon is a social media/commerce company, yet it didn’t fully show off its soup-to-nuts approach to commerce.  A simple link at the end of the ad (e.g., www.groupon.com/wtf if they are REALLY interested in buzz) could have explained the company’s rationale and (thus) create an extension of the ad.  Giving consumers a good reason to come to your site is crucial for ads like this.
• Think long-term. I am not an expert in global politics, but I have to wonder what this ad will do to Groupon’s attempts in connecting with the Chinese market; as I recall, Groupon was forming an alliance with a Chinese company called Tencent.  The Chinese culture doesn’t do well when it comes to insulting its heritage, so why risk hurting relationships over a 30-second ad?
• Don’t “pull” the ad–it’s an age-old tradition that doesn’t work, anymore. Thanks to social and digital media, the ads are on YouTube, Ad Age, Fox Sports or any other Web site that hosts video–not to mention the countless number of blogs and rants from average Joes like me.  You cannot “pull” the ad from these places; if anything, it is going to spur people on to do it more.

What else could the company have done different?  Would you have changed anything?