Dive Brief:

• Groupon debuted a new user experience for select mobile app and web users in the U.S. and Canada to highlight new inventory and prompt repeat purchases, the company announced on Tuesday. 

• The redesign includes personalized recommendations, an improved search function and buy-it-again features. It allows customers to discover relevant experiences quickly, see search results based on their intent and location, and repeatedly buy items or experiences, the company said.

• The company plans to introduce these features to more customers in the U.S. and Canada during the second quarter and internationally afterward, per the announcement.

Dive Insight:

With these new personalization features, Groupon said it aims to shift how consumers see the platform, from a place to find inspirational or need-based purchases to the go-to platform for local experiences. The redesign is part of the company's overall growth strategy to broaden and enhance its inventory. 

"Our customers told us they wanted a more curated, relevant experience, and these changes make it easier for them to find exactly what they're looking for when they come to Groupon — while continuing to inspire them to try something new," John Higginson, chief technology officer at Groupon, said in a statement. "These are some of the most visible changes we’ve ever made, and we’re excited about our potential to drive customer purchase frequency higher and attract new consumers to the Groupon platform."

The COVID-19 pandemic has only raised the stakes for retailers to perfect the formula for top-tier customer service, and that includes online. As shoppers shifted purchases to e-commerce en masse over the past year, the experience on retailer sites suddenly became much more important.

Consumers have long wanted personalized experiences, but retailers have appeared to miss the mark over the years. A 2019 BRP survey found that most customers (79%) said receiving personalized service from a store associate would be a critical factor in deciding where to shop, but just over half (53%) of retailers surveyed indicated that personalization was a key priority.

Aside from seeking service that's tailored to their tastes, consumers have also expressed frustration with poor digital shopping experiences, which some research indicates could drive customers away. A 2020 report from Contentsquare indicated that only 15% of consumers were happy with their online shopping experiences, and about half (49%) were displeased with pop-ups and ads, site crashes during checkout (48%) and discount code failures (45%). Just under three-fourths of respondents in a 2021 Coveo survey indicated that they would leave a brand after three or fewer dissatisfying customer service experiences.