Another Reason to Never Buy Groupon


The following video is part of our "Motley Fool Conversations" series, in which senior technology analyst Eric Bleeker and Chief Technology Officer Jeremy Phillips discuss topics around the investing world.

One of the larger problems with Groupon or LivingSocial is they have no great way of differentiating between new customers and existing customers for any particular business that offers a deal on the platform. That creates a massive problem for vendors, as they could end up significantly discounting their goods or services for regular customers who would have bought at full price anyway. Another problem is the relatively untargeted nature of the deals they offer.

In Jeremy and Eric's view, these problems have been solved with American Express' new app, called "My Offers." This app uses cardholders' previous spending histories to recognize where they're already regular customers and what types of deals they might respond to. This extremely vendor-friendly offering is practically unmatchable by Groupon or LivingSocial.

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At the time thisarticle was published Eric Bleekerand Jeremy Phillips have no positions in the stocks mentioned above. The Motley Fool owns shares of, Apple, and Open Table.Motley Fool newsletter services, American Express, OpenTable, Apple, and Travelzoo. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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