Consumer Reaction To Gap Deal Represented A “Spike” In Positive Opinion About GroupOn

We were surprised by the viral nature and massive revenue by the August 19th Groupon/Gap promotion which generated up to $11 million in sales – and we’ve been exploring the results ever since it happened. Previously, we looked at data on web traffic provided by Experian Hitwise and Alterian offered Social Times exclusive insights into participants in and distribution of conversations about the deal across web platforms.

At the request of Social Times, NetBase used its ConsumerBase analysis tool to look at consumer sentiment related to Groupon before, during and after the Gap deal.

NetBase concluded that the chatter surrounding the promotion represented a “spike” in a year-long trend of positive feelings and opinions about Groupon. The surge of sentiment expressed about Groupon the day of the promotion is impressive due to the substantial widening of the spread between positive and negative sentiment. We reported all was not smooth the day of the promotion, but the brand foundation laid down by Groupon – with a little help from creatively preparing for site access problems – helped the company maintain an overall positive buzz.

A look at the brand mentions of Groupon in June and July – along with group buying competitors Living Social and Offermatic – provides a view of its brand status going into the promotion.

It’s interesting to note that in the negative mentions collected during the two weeks following the Gap promotion – as illustrated by the pie chart below and select verbatims – a large number of comments were about the impact on businesses as a result of Groupon promotions.

Examining all data sets, we see days prior to the Gap deal on which Groupon experienced positive peaks – of site hits, conversations and positive sentiment – related to its collective local/regional deals. Groupon’s daily impact appears to be incrementing its brand strength in measurable ways that go beyond any single promotion.