Groupon Goods Local

1. Darren Liu, Daphne Zhao, London Thomson-Thurm, Nikkho Shandittha
Tech Challenge

2. Executive Summary
To reduce returns and encourage purchases, we propose
to:
• Strengthen Customer Reviews
• Redefine “Local”
• Develop Google Glass Groupon App
• Introduce 3D Reconstruction for Groupon Goods

3. Approach
Research
• Company interview.
• Customer
Ethnography.
Brainstorm
• Design research
brainstorming
method.
• Evaluation of ideas.
Testing
• Testing the ideas on
users.

4. Our understanding about Groupon Goods
Local Business Model
• What Groupon Goods Local is:
– Value proposition: For merchants - Promotion of
goods.
– Value proposition: For customer – Discovery of local
curated goods.
• What Groupon Goods Local doing in the future:
– Mobile.
– Local

5. Problem Statement
• Uncertainty – Consumer are uncertain about the goods
they bought at Groupon. Whether it is the right fit in
terms of size and layouts.
• Return Issue – Because the customer feeling uncertain,
there will be instances where goods purchased are
returned. The problem is exacerbated by the fact that
there are inconsistent return policy from Groupon and
the local merchant.
• Local issue – Groupon app only takes one address as
the local. Suggestion of local goods only come from that
one address. The fact is a customer might have two
locals: office and home.

6. Solution 1: Strengthen Customer Reviews
• Definition:
- Encourage customers who make deals to review the product, and show the reviews together with
buyer experience level (decided by number of purchases completed) on the product page
- For best sellers which will be on shelf again, show expired product page with buyer reviews to let
customers know what a good deal they have missed, and list when the deal will come back to
remind customers of not missing it once again
• Benefits:
- Reducing uncertainty helps customers make decision to buy; advance notice of best sellers coming
back helps increase customers’ interest
• Definition of success metrics:
- More purchases
- Less returns
Sold 3000+
Coming back on Nov 10
Experience level

7. Solution 2: A better defined “Local”
• Definition:
– For Goods Local pick-up, my “local” changes based on:
• If I’m at work or at home (could be two different cities)
• The store’s hours of operation (where will I be when?)
• My mode of transportation (do I have a car? Access to public transit?)
• If I’m in a big city or a small town (5 miles in NYC is far but 5 miles in Evanston with a car is
close)
– Action Steps :
• Add filters for the consumer based on:
• Option to choose multiple cities or easily switch between home/work saved cities
• Option to choose specific number of miles (not just 5, 25, etc)
• Option to indicate mode of transportation (public, car, bike, walk)
• Incorporate nuances of each city over time by collecting information from merchants
on how they define “local”
• Benefits:
– Linked to Groupon’s mission to become world commerce operating system.
– There is no competitor that defines “local” well and acknowledges these nuances.
• Definition success metrics:
– More purchases.
A better defined “local” is key to making the Pick-up Business a success.
vs. vs. vs.

8. Solution 3: Google Glass Groupon App
• Definition:
– creating a Google Glass Groupon App that will identify products that people wear on
the street and enabling the user to add that into their to-buy list. (Similar to Shazam for
goods)
• Benefits:
– This will ensure that user will have lesser product returns as customer is seeing the
product in real life. It also improves the mobile experience and will ensure in making
more products bought.
• Definition success metrics:
– Less product return. More product purchases.

9. Solution 4: 3D Reconstruction for Groupon
Goods
• Definition:
– Groupon visualizes its goods local using 3D reconstruction technology.
– Visualization is done by developing Groupon’s 3D reconstruction software; merchants take multiple
calibrated pictures from different positions, and send them to Groupon for model construction;
customers can see online goods with 3D models on Groupon mobile App, and can rotate, zoom or
change angles to see different aspects of the goods. It also allow augmented reality feature so that
the user can try out what it looks like wearing the product.
• Benefits:
– allow customers to see the design and shape of Groupon goods, and enhance their likelihood to
buy by reducing uncertainty
• Definition success metrics:
– Less product return. More purchases.
Product Model

10. Q&A