CEO Andrew Mason is not having the best week of his career. Groupon, the rapidly growing web phenomenon that delivers localized deal of the day coupons to its membership, ran a series of ads during the Superbowl. They paid top dollar to be in front of millions of viewers.
In the most controversial of the ads run that evening, images of the Tibetian people and the troubled country flash of the screen. Timothy Hutton tells the audience, “the people of Tibet are in trouble. Their very culture is in jeopardy. But they still whip up an amazing fish curry.” His Groupon purchase allows him to save big in a nearby Chicago restaurant.
Other ads in the series included Cuba Gooding Jr. talking about the plight of whales, followed immediately by the joy of saving money on whale watching excursions, and Elizabeth Hurley coming razor-close to the edge of decency with a spot that began in Brazil and ended with discount waxing.
In a blog post Mason posted on Monday Mason tried to explain the reasoning behind the ads. They were intended to be ironic and humorous.
Any comedian will tell you that if you find yourself explaining your joke, the joke wasn’t funny. The public perception was that the ads mocked serious situations and trivialized the very real, very important causes that they care about. The ad has been called offensive and misguided.
Why didn’t anyone notice this before the ads played on one the most high profile venues imaginable?
Knowing Your Customers = Knowing Your Brand
Groupon failed a critical test when they approved this ad campaign. Dominant organizations achieve their position by, among other things, making sure that every element of their operations remains in alignment with their Brand Lover’s values and beliefs. Customers want to do business with organizations that are like themselves. They want to find that common ground, a place where they are among friends and peers.
Groupon is building its brand overtly on the appeal of community and connection: individuals purchasing en masse enjoy discounts at restaurants, clubs, adventure excursions, and more.
By running ads that appeared in direct conflict with values held by their most loyal customers and those who had the potential to become loyal customers, Groupon introduced an element of doubt into the relationship. Maybe, those best customers could find themselves thinking, I don’t belong here after all.
There are so many things that could damage the customer’s relationship with a brand. Poor customer service, sub-standard products, negative reviews; the list is endless. Yet none of these are as powerful a deterrent as alienation. Nothing will drive a consumer from a brand as a sense of betrayed ideals.
The hostile consumer reaction to the Groupon campaign comes from many levels. In a way, we see these intensely affected consumers reacting to a case of mistaken identity. We don’t like it when people turn out to be very different from what we were led to believe about them. Groupon had built a friendly, affable, we’re-all-in-this-together persona and shattered it with three minutes of snarky humor that screamed “What you care about is stupid!”
Can Groupon Recover?
Groupon has a difficult challenge ahead of it. Mason’s taken some strong initial steps by coming out and addressing the issue promptly. Acknowledging the problem is a good first step. Now it becomes critical for Groupon to connect in a more meaningful, engaged way with their best customers.
Developing a deeper understanding of what their best customers value most helps you pick marketing campaigns that will leave your customers laughing and skip the ones that will make your customers leave you!