Leverage the Long Tail

LongTail: Chris Anderson

LongTail: Chris Anderson

As one of the eight core patterns mentioned by O’Reilly, leverage the long tail has been best described by Chris Anderson’s economic long tail model. In general, it describes that, compared to those most hit marketing focus, the market demand increasely shifts to those long tail niches, which generates the business in success.

 

Scoopon, is the Australian’s largest daily deals company and an integral part of Australia’s number one online shopping group. Starting similar with Groupon in America, Scoopon integrates small businesses and offer discounted deals to local people.

 

Scoopon

Scoopon

Scoopon was built on the driving forces of the Long Tail. Back to 3 years ago, there is no “group deals” offered from any website in Australian. Group deals, refers to some people online purchasing a local business’ services or products as a group for discount, and such minimum amount of purchase are often decided by the business. However, Scoopon explores the new market successfully, and even add additional function (i.e., travelling and shopping) to the website. Comparing to this, Groupon slowed down in entering new market. They also contract with more businesses to corporate and attract new customers in different ways (e.g., joint into online shopping group with Grocery Run, Catch of the Day and etc and let customers to share the deals through other social platforms).

 

They use algorithmic data management to match supply and demand. There are some statistic offering beside each deal showing the time left, how much the deal could save and how many scoopons (vouchers) are sold. In most cases, these statistics offers reliability and sometimes stimulations to the customers to purchase the deal as well.

 

Leverage customer self-service to cost effectively reach the entire web. Each customers of Scoopon could manage and control their own accounts with their personal delivery address, bank details and purchased deals. Also, Scoopon leverages the low-cost advantages of being online.

 

My Scoopon

My Scoopon

To sum up, Scoopon leverage the long tail in a quite noticeable and successful way.

 

 

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One thought on “Leverage the Long Tail

  1. Isn’t a major feature of Scoopon the immediacy and time-limited nature of many of the deals and coupons? Doesn’t this violate some of the fundamental features of long tail economics?

    I mean, I can understand how the broad universality of Scoopon adheres to the idea of connecting micro-markets with niche producers–but the temporary nature of the content feels different to me.

    By necessity, the long-tail deals with a market that exists in perpetuity: infinite products will find their niche given time. It isn’t about flash selling or hitting blockbuster sales all at once, but rather ensuring a steady trickle of products sold, over-time, infinitely.

    Now, in aggregate, I can see where Scoopon themselves have their fingers in so many pies simultaneous, and so many ongoing niche promotions, that they are in fact covering the entire spectrum of the tail. But, on a case-by-case basis the flash nature of Scoopon’s deals seems to have an immediacy that runs at odds with a product that needs an infinite amount of time to make good.

    Just some food for thought!

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