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August 9, 2011 11:03 am GMT
With Groupon on the verge of going public, and Google, Facebook, and just about everyone else rushing to copy the idea, there's no question that the model has been a huge hit with consumers. But there are still some questions as to just how much it helps out the businesses offering the deals. It's essentially a loss leader model, so the success metrics can be tricky to accurately gauge. Bloomspot has a take on this model based around success " for both merchants and customers. And investors are buying into it big time " to the tune of a fresh $40 million in funding.To be clear, Bloomspot does not orient themselves around group deals. Instead, they focus on offers from high-quality merchants looking to connect with their best customers. Said another way, they're not looking to send deals to the masses, they're looking to connect certain vendors with (hopefully) loyal consumers. The offers they serve are more highly tailored for specific interests and demographics. And again, they believe they've now nailed the model that will work.
Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/VdauIm1R488/
Bloomspot Raises $40 Million To Prove Their Local Offers Model Works "" And They Guarantee It Does
With Groupon on the verge of going public, and Google, Facebook, and just about everyone else rushing to copy the idea, there's no question that the model has been a huge hit with consumers. But there are still some questions as to just how much it helps out the businesses offering the deals. It's essentially a loss leader model, so the success metrics can be tricky to accurately gauge. Bloomspot has a take on this model based around success " for both merchants and customers. And investors are buying into it big time " to the tune of a fresh $40 million in funding.To be clear, Bloomspot does not orient themselves around group deals. Instead, they focus on offers from high-quality merchants looking to connect with their best customers. Said another way, they're not looking to send deals to the masses, they're looking to connect certain vendors with (hopefully) loyal consumers. The offers they serve are more highly tailored for specific interests and demographics. And again, they believe they've now nailed the model that will work.Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/VdauIm1R488/
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