Groupon CEO Gets Reputation Management

Groupon, the local daily deals platform built on social engagement, is known for its seemingly instant success, massive growth and never-ending IPO / buyout rumors.  However, the darling of the current web 2.0 (or is it now 3.0) bubble is not without its flaws. Any company, regardless of how nascent and flawless they may seem to be has to deal with, and overcome, issues that can undermine and stall growth.
Groupon recently offered one of its daily discounts to customers in one of their newer markets: Japan. The deal involved a traditional New Years meal called “osechi” at a substantially lower price.  This elaborate meal, which cost customers 10,500 yen ($127), was either delivered late or arrived in a sub-par condition. The resulting onslaught of negative press in a market Groupon is trying to gain a foot-hold in was massive with customers taking to the Internet to post pictures and comments. Groupon replied with a standard offer of refunding the customers money along with a voucher for 5,000 yen. However, they and specifically Groupon Founder / CEO Andrew Mason, went one step further and posted a video to their YouTube channel (posted below) expressing its deepest apologies, taking ownership of the mistake and making it clear that they will work to rebuild its tarnished image in Japan. The video response expressed sincere regret and gave the feeling that it wasn’t just some corporate statement written but a cookie-cutter PR agency – it was a personal statement from the person with the most at stake.
Mistakes happen, you can’t avoid the inevitably. What you can avoid is making the mistake worse by addressing the core issue directly, being sincere in your response / reaction and making obvious ongoing efforts to address any deficiencies.

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