• Groupon Effecting Your Online Reputation

    Groupon impacting your online reputation?  It must be a great thing, right?

    Well, it could be wrong.  Before you consider joining a discount coupon site such as Groupon, and have determined that it makes business sense (which could be challenging since they take about 50% off the top), consider the impact it could have on your online reputation.

    I’ve heard this from a few social media consultants: a business signs up with great anticipation with a service such as Groupon, and gets bombarded with incoming orders at a great discount.

    However, what they don’t consider is the negative reviews this can generate.

    With so many incoming orders, it may be hard (or impossible) to process or schedule them in a timely manor.  Or, the quality of the service could suffer.  Or, the business owner could be resentful of loosing money on each product or service and not do a good job.

    These could all lead to negative reviews on Yelp or other similar sites.

    Also, there seems to be statics on their online reputation that back this up.

    Three professors from Boston and Harvard Universities monitored the impact of thousands of Groupon deals and found that ratings on Yelp declined 10%.

    Is Groupon worth it?  Only you and a through business analysis can answer that.  But, as always, think about how each business decision  could impact your online reputation—and the effort required to recover and repair it, which could be sizable.

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