Profiting from the fundamentals of Group Buying: part 1… Focus


Group Buying works for a reason, regardless of the service woes plaguing the industry (which have been driven by a combination of greed and inexperience, not the model itself) the principles behind Group Buying are sound. Over the next few posts, I will explain the key mechanics and position them in a series of non-Group Buying contexts.

There are six key mechanics inherent to the category that are designed to illicit an emotional response, such as an impulse purchase.image

This is the first of six posts I will write that describe those mechanics.


Limiting promotional efforts to only 1 – 3 featured offers enhances the perception of those offers and likely uptake, minimising “noise” around those offers will further spotlight the chosen few. Featuring multiple offers on the other hand dilutes the “WOW” and runs the risk of Paradox of Choice effects.

Most email platforms will support controlled tests, such as sending one control group an EDM with multiple offers, one with the three best offers and one EDM with only a single “hero” offer.

Assuming the control conditions are sound, the likely outcome is that the Hero and “three best offers” EDMs will each provide a click through rate that is greater than the “multiple offers” EDM even though the multiple offers email included the featured offers from the other tests.

Finding the right balance is critical, and running controlled A/B and Multi Variant Tests will find that balance.

Come back soon, the untapped power of the Thank You Page.


Most transactional websites share a common shortcoming, leaving a significant amount of value up-tapped. The Thank You page is seen as a simple confirmatory page, there to provide certainty to the customer that what they think just happened, just happened. But the Thank You Page is a comma, not a full stop.

You have battled hard to win the customer, fought to provide the right product at the right price, and you have lost many along the way. But once a transaction is complete, you’re done, there’s a tick in the box and the user begins again, <close window>, <new tab>.

But your customer is, at that moment, your biggest advocate – you are in the Golden Window. Your Advocate is brimming with delight at the purchase of that holiday, auction item, or e-book, so why stop now?

Immediately post transaction is the right time to harness their advocacy, and here are six ways to get value from the Thank You Page:

  1. Cross Sell: Have a series of pre-determined product offers, “you bought X, check out Y” – providing such offers pre-transaction is tougher and will result in a reduced conversion rate overall, but it will lead to an increase in the average basket size and may be worth while in the long run. With post transaction, there is less risk and can be used to perfect product matching.
  2. Loyalty Discounting: Reward the first purchase with a discount on an immediate subsequent purchase
  3. Voucher offer: Provide a variety of vouchers, gather opt in to email alerts to grow your email base and encourage redemption
  4. Friend Get Friend: Great time to encourage your advocates to recruit for you, make it easy for them, and provide incentives the purchaser can give away, such as discount on first purchase (people don’t like to profit from their friends, but being able to secure a discount for their friends makes them feel important)
  5. Facebook promotion: simply “click here to Like our Facebook page”, or “share the news with your friends that you just secured a holiday!”
  6. Promote affiliates: (this option is possibly the easiest to execute but the lowest value adding) add a display ad to the Thank You Page which can be sold on a CPM or on a take-over basis.

[check out RockLive in Australia and the many other agencies emerging in this space]

Take note, your Audience is growing old more quickly than you are!


The average age of an Australian internet user is growing fast; catering for this shift is increasingly important.

According to the Australian Bureau of Statistics, 79% of Australians over the age of 15 are online – meaning adoption is way past the Early Adopter phase (According to the Diffusion of Innovations curve) and well into the Late Majority – at 84% adoption only the Laggards are yet to join!

In terms of age profile, 96% of 18 – 24 Year Olds are already online, so new audience growth will mostly come from older age segments in the coming years. In the past two years, 55 – 64’s joined the web at almost twice the rate of their younger counterparts.


This new older audience presents an interesting opportunity, by nature they are more considered and loyal (and/or resistant to change), and have an appealing cash pile at their disposal.

Winning the over 55’s is hard though, often they rely on personal recommendations and will Trial only after careful consideration, but they are worth the effort.

So here are six tips for appealing to an older user:

  1. Encourage linger time, provide plain and simple T’s and C’s, lots of expansive detail
  2. Include testimonials, the more the better (including Facebook ads as below)
  3. Be sensitive with lifestyle shots, don’t alienate the older demo with youthful images, equally, avoid images of over 50’s, over 50’s think associate with people in their early 40’s!image
  4. Consider a larger, easy to read font
  5. Leverage Facebook ads such as the one shown here, “friends as fans” work as a testimonial
  6. Take care to provide a generous returns policy, over 50’s are considered and risk averse.