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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