Re:Groupon IPO: The Silver Lining
by Hisoka on Friday August 12, 2011 @10:33AM
(#2877393)
But don't they need to grow to justify that valuation? A mailing list is a depreciating asset. You can milk it year after year, but the number of subscribers who buy a Groupon will decrease.
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Another great point - churn is their biggest concern. They need to continue to keep the product relevant somehow so people who do actually read and buy continue to come back, or figure out a way to convert more inactive subscribers somehow. They just started a loyalty program that could bear fruit, but only time will tell.