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It seems like they could benefit from offering better filters/subscription methods to their members, e.g. I want to receive only restaurant deals as a simple filter. Sure it'd decrease their overall coverage but it could help retain the value of the emails sent... I think we've all gotten to that ignore point with certain senders.

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Limitations in inventory (limited by sales force reach, geography and the number of their business clients) will make effective filtering very difficult.

If you think of deals as SKUs, there's a huge granularity mismatch between filtering 50 deals in my geographical area vs. filtering millions of products at Amazon. (Not to mention that it would seem to be very difficult for them to capture much useful data about user preferences to make recommendations or perform proactive filtering.)

Definitely. One can only stand so many spa and skin treatment discounts per week. Then again, I wouldn't imagine hackers to be the main target group for the majority of groupons.

I've heard that their main target group is young professional women, which makes the spa/skin stuff a lot more sensible.

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