Facebook, owned by Mark Zuckerberg, is one of the most popular social networking sites in the world. Facebook has stopped giving deals. Don’t be amazed, let me assure you, that it did start. On April 25th, 2011, it started giving deals in five American countries namely Austin, Atlanta, San Fransisco, San Diego and Dallas. It gave online coupon discounts and some other special offers to all its users. Initially Facebook took deals from some local businesses but later it reached to International retailers as well. Users were given some exclusive offers at particular places as soon as they checked in to a place using Facebook Places. Facebook Deals opened as a challenge to Groupon, the deal-of-the-day website.
Google, Facebook and Groupon– realising the size of the market for coupons, began competing against each other. Facebook Deals were an overnight success, but they couldn’t handle the response. The real big question was to see which one was going dominate the market.
But soon, after a short span of four months of testing the Facebook Deals, it decided kill it off. On this Facebook said, “We believe there is a lot of power in a social approach to driving people into driving businesses”. Facebook’s announcement of shutting down the deals obviously gave Groupon and others a sigh of relief.
Though most people agree with the idea of them shutting the Facebook deals saying it is not their core product, but in my opinion it hasn’t been retrieved completely, it’s only been taken back to the lab to fix and make better so that when Facebook returns with it this time, they would leave behind their peers. It is, in my view, foolishness to underestimate your customer. The customer is smart and experienced and goes through tons of these deal sites a day before he agrees to spend his valuable dollar. Facebook has realised just that. Though the test was successful but Facebook intends to take it further and make the Facebook deals advanced to be able to cope with the Customer expectations much better.