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When Groop Swoop announced its official launch, their web site was all about providing a social networking platform for users to interact with information and ideas on where to get the best buys and how to take advantage of them. It was all about an open dialogue and for people to help and advise others on where to commit their money. This soon led the company’s development of the platform now called Social Bargaining. The whole theory behind it is about local businesses and communities getting together to influence the availability of the discounts offered, hence the name of Groop Swoop. Dedicated to saving local people hundreds of dollars a month Groop Swoop offered coupons on everyday items; on anything discounts could be negotiated. It is a simple process where members get an email every about the deals available for that day, and these deals were only available through the Groop Swoop website. Members log into their account and join a promotion. When sufficient numbers of members have committed to it, the promotion becomes live and valid. By encouraging members to sign up with the Facebook or other social network, the idea is to create viral promotional offers. That is, when one person has committed to buying something, there is a reasonable prospect of their social networking friend also buying it too.
Without question, the Global Financial Crisis (GFC) has caused massive hardship to the average American family budget and so the discretionary spending of the masses has evaporated in favor of the value buyers seeking bargains where ever possible. Reuters published that eighty nine per cent of American families now use coupons when they do their household shopping, and the Internet has become a logical extension for the use of coupon marketing strategies.
Groop Swoop Unites Local Communities with Special Group Buy Bargains
The process at Groop Swoop is simple enough. Their team negotiates group buying opportunities with vendors in the local community area, which will have a minimum number of items that must be bought for the promotion to become real. Groop Swoop staff then use the social networks to “beat the drum” and to find sufficient members to take up the offer. When a new offer is announced, there is an aspect of the members committing to the offer helping to take the offer viral. Members literally do go to their friends on Facebook and Twitter to get them to participate. Starting in San Francisco, the business model proved itself and then spread to many other parts of the country
Deals and promotions tend to be done around city locations, meaning that vendors don’t need to be national chains in order to get involved in social bargaining. Not only do their sales grow, but being local community based promotions, there is the economic stimulus to the local economy resulting in increased job opportunities and greater affluence of the buying consumers.
The web site was designed around not being cluttered, and the registration process actively encourages users to log in with their Facebook account. This is important because it then sets the scene for the viral nature of new offers spreading fast to member’s contacts. This not only helps to grow interest in promotions, but it also helps to grow the Groop Swoop user base at an exponential rate. And so anyone with a Facebook account can register by clicking the appropriate logo and join their Facebook profile to the Groop Swoop account.
Alternatively, anyone can create their account on Groop Swoop with just their email details. It is totally free to join and to browse all the available deals and to check out the web site features and benefits. It is only when a user joins in on a group buying promotion will they user be spending money, and even then the Groop Swoop fees are collected from the vendor, and the user only pays the price for the goods.
Groop Swoop Bought Out by BuyWithMe is is Regrouping
Having just been acquired by BuyWithMe in 2011, the Groop Swoop web site is going through a transition stage and is not currently offering new deals or promotions. It is unknown when and it what form it will be reopened for business as usual. The fact is that the group buying concept is relatively new to the Internet consumer world, and it is starting to become quite a battlefield with many well resourced organizations going head to head in the market space. Even china has joined the fray with some high profile acquisitions of competitors, and larger American competitors have become very aggressively represented in the main Asian market places of Taiwan, Hong Kong and Singapore, as well as the mainland of China itself.
Whereas in the past, there were large sections of the community who felt that using coupons was demeaning, transacting online group buys has removed all negative stigmas associated with coupons, and social bargaining has taken on a fierce and loyal commitment by the consumer generally. This has no doubt been given a positive push with the severe financial strain brought about by Wall Street and the Global Financial Crisis the world’s investment bankers forced upon the average family. While the GFC will eventually pass, and the United States will eventually come out of its recession, even when the country returns to full employment the buying patterns and habits of the consumer will have a new set of buying habits, and Groop Swoop is one such organization that is poised to benefit most of all.
As the Internet continues to pervade all levels of modern society, and with smart phones and iPhones now becoming very functional with their web applications, the reach and significance of firms like Groop Swoop are here to stay. And at the end of the day, it will be the consumer who finally has a win buy aggregating their buying power with other members of their local community. Groop Swoop may not become the largest, but they have a proven business model.