1. Doing Offers Right
Jim Moran | @jdmoran
SMX East: Thursday, September 15
2. Today
Whats the state of play?
Is the market sustainable?
Why should I care?
Who should I work with?
What do I do?
3. State of play
4. New Multi-Billion Dollar Industry
5. The Daily Deal Stack
Daily Deal Sites
MERCHANTS
CONSUMERS
Vertical Deal Sites
Publishers
White Label
Optimization
Merchant Services
Data
Exchanges
Aggregators
Consumer Services
Merchant Agencies
SOON
6. Sustainable?
7. High Repeat Rate
43% of daily deal merchants in May had run at least one prior
deal
8. High Merchant Satisfaction
Data from Yipit phone survey of SMBs who have completed a Daily
Deal in the last 12 months. 80 responses.Grouponsreports repeat
interest at 97% (grouponworks.com)
9. Breakage Rate 20%
Recent data on Groupon is consistent: (i) breakage of 10%
(TechCrunch, 8/14/10), and (ii) 20% redemption in month 1 and 15%
redemption in month 12 (Chicago Tribune 8/16/10).
10. Profitable at 19% Retention
Assumptions from industry research and Yipitphone survey of SMBs
who have completed a Daily Deal in the last 12 months. 80
responses.
11. Daily Deal Consolidation
12. Why should I care?
13. Its Big
$5+ Billion market that did not exist two years ago
14. Bigger Than Local Advertising
14
15. Its The Future
Data from Yipit phone survey of SMBs who have completed a Daily
Deal in the last 12 months. 80 responses.
16. Best outlets?
17. Industry Leaderboard
18. Groupon vsLivingSocial
19. Google
20. Amazon
21. Best Practices?
22. Top Categories by Revenue Share
22
23. Avg. Price Point by Category
23
24. Deal Performance by Category
24
25. Industry Revenue by Price Point
25
26. Deal Performance by Price Point
26
27. Optimize for Each Variable
Assumptions from industry research and Yipitphone survey of SMBs
who have completed a Daily Deal in the last 12 months. 80
responses.