Groupon may be a $25 billion company dominating the daily deals space, but it’s far from perfect.
Stuart Wall, the 28-year-old founder of New York-based SignPost, thinks he’s come up with a way to attack Groupon’s market and solve some of its shortcomings.
SignPost, which launched last October and is backed by Google Ventures and Spark Capital, offers multiple ongoing deals that don’t expire, unlike Groupon.
It also offers a different user experience too. Customers can search SignPost by location and see all of the ongoing deals nearby. Soon, the deals will be customisable based on users’ preferences, so every deal will be as relevant to the consumer as possible.
Businesses can login, create as many promotional discounts as they want, whenever they want, and set their expiration dates. They can also limit how many deals can be purchased.
SignPost is just a pipsqueak next to Groupon and LivingSocial, but it’s growing fast. Its subscribers (currently around 25,000) and transaction numbers grew 191% in March alone, Wall tells us.
Wall is relying on current SignPost users to market his product. Users can apply to become “Deal Scouts,” and promote SignPost to local businesses. Deal Scouts are paid to bring new businesses to Signpost. In March, the number of Deal Scouts grew from 5 to 50.
While we think this is an innovative approach to the flawed and over-saturated daily deals industry, SignPost isn’t without faults.
For one, there’s no competitive separation, which a lot of advertisers will not be ok with. Pizza Hut and Dominos won’t want to be advertising discounts right next to each other. They want to own the user’s attention.
Wall, however, thinks a little competition is healthy. He says, “Choices are better for the consumer.”