The GroupOn modifer is simple, more customers in exchange for a lower Yelp score #

A fascinating study on what GroupOn does for the Yelp review score of a business:

But their most controversial finding is that a Groupon deal seems to have an adverse impact on reputation as measured by Yelp ratings. Their analysis shows that while the number of reviews increases signifificantly due to daily deals, average rating scores from reviewers who mention daily deals are about 10% lower than scores of their peers.

It’s not a perfect correlation – I don’t think that the self-selecting Yelp reviewers can be directly mapped to overall reputation (anyone got a link to relevant papers) but it makes anecdotal sense – if you bring in customers who like low cost deals and shop around for the GroupOn of the day, is it any wonder they are more picky and more inclined to shoot from the hip as they move on to the next free cupcake with a coffee cafe?

One Response to “The GroupOn modifer is simple, more customers in exchange for a lower Yelp score”

  1. person287 says:

    All of Groupon just stinks of rubbish to me. All those pop-unders just put me off, I mean what other reputable company uses those?