RAAK

According to Forbes, social buying site Groupon is the fastest company from zero to 1 billion dollar in revenue in history. Still many people do not know what it is and how it works and whether it was for them.

RAAK spoke to Hristina Hristova of the Groupon social media team and asked her a few pointed questions. What was obvious to us when we visisted their London HQ was that the company is bristeling with energy, quickly filling up every floor of the building they occupy near Liverpool street.

Our main take-away – for most business Groupon is not really a way to make money directly. Rather it should be seen as a marketing spend. It is a way to drive massive amounts of new custom to your business. What interested us is the extent to which Groupon helps businesses prepare for the waves of customers they drive to them.

As a bloke, I am struck by the nature of the deals they offer. Facials and the like seem to be the order of the day. And yes, the typical customer is female, young and tech savvy. But I have the feeling Groupon will ,like to change that.

Groupon sees their main competitors as Facebook Places. I asked them about Foursquare, but no. Facebook is the threat, even though Places are yet to see much traction.

Part 2 deals shortly with Groupon’s European history.