webinar-daily deals and mobile-engagement explained
DESCRIPTION
In this webinar, from the Msgme Industry Insights series, we unpack the daily deals business completely and reveal why ongoing, interactive engagement is the key to success.TRANSCRIPT
Msgme Industry* Insights
Kane Russell, VP of Marke,ngWaterfall Mobile
* Daily Deals And Mobile -‐ Engagement Explained
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Waterfall Mobile and the Msgme Pla:orm
Waterfall Mobile๏ Founded August 2005๏ Offices in SFO (HQ), NYC & Aus,n๏ Backed by Vista Equity Partners ๏ Cross-‐channel mobile & social CRM via SMS,
MMS, QR Codes, IVR, Facebook & TwiXer
๏ Free trial: www.msgme.com๏ API suite: developer.msgme.com๏ Custom applica,on development๏ Short code provisioning, cer,fica,on
& audit management
Msgme
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๏ Daily deals -‐ “hot” or “not?”
๏ Economics -‐ how daily deals create value
๏ Success factors -‐ how daily deals can stay “hot”
๏ Solu,on -‐ mobile marke,ng CRM
๏ Implementa,on -‐ mobile and daily deals
๏ Key takeaways
Objec>ves
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Daily Deals -‐ “Hot”
All Summer/Fall 2011 Headlines
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Daily Deals -‐ “Not”
All Summer/Fall 2011 Headlines
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What’s Affec>ng Revenue?
$0
$15
$30
$45
$60
$75
$90
Jan ‘10 2/10 3/10 4/10 5/10 6/10 7/10 8/10 9/10 10/10 11/10 12/10 1/11 Feb ‘11
$62
$89
$81$76
$55
$46
$53
$29$31$26
$21$19$14
$11
Millions of D
ollars
Month/Year
Source: Techcrunch
2010 -‐ 2011 Groupon Revenue Es>mates
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Is Deal Fa>gue A Factor?
Subscribed to daily deals
Subscribed to Groupon & Living Social
Only buy from Groupon
Subscribed to at least 3 providers
Been subscribed more than 1 year
Now opening fewer or none of offers
Will buy fewer deals than have in past 68%74%
20%36%41%
72%86%
Source: Local Offer Network EsAmates
Daily Deals Consumer Survey Data (n=943)
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Daily Deals Industry Revenue Projec>ons
Source: Local Offer Network EsAmates
2010 2011
$2.67
$1.12
US Group Buying/Daily Deals Market INDUSTRY REVENUE (GROSS)
in billions of dollars
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Daily Deals Industry Offers Growth
Source: Local Offer Network EsAmates
10,000
20,000
30,000
40,000
2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 (E)
6,895
14,462
19,67622,163
39,993
US Group Buying/Daily Deals MarketTOTAL OFFERS PUBLISHED
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Economics of Daily Deals
Consumers
Merchants
Daily Deals Service Providers
Before
Deal Day
DuringAjer
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Before Deal Day
๏ Daily deal value: amount consumer would pay normally
๏ Daily deal price: amount consumer pays for daily deal
๏ Daily deals sold: number of daily deals purchased by consumers
๏ Revenue split: agreed upon provider and merchant revenue share
๏ Payment terms: ,me un,l provider pays merchant
๏ Average >cket: the normal purchase amount at merchant establishment
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Deal Day
๏ Merchant revenue: amount of revenue generated for merchant
๏ Provider revenue: amount of revenue generated for provider
๏ Redemp>on rate: percent of customers that purchase and use daily deal
๏ New customers %: percentage of new customers for merchant from deal
๏ Credit card processing: charge by credit card companies for transac,ons
๏ COGS: cost to the merchant of good sold
๏ Other merchant costs: cost to the merchant of doing business
๏ Consumer spend: consumers may spend more/less than daily deal value
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Ajer Deal Day
๏ “Yelp” effect: percep,on of merchant aler daily deal promo,on
๏ Repeat customers: number of consumers who return to merchant
๏ “Deal hunter” effect: number of consumers willing to buy at full price
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An Example Daily Deal Promo>on
According to terms from Techcrunch “Stop The Hate,” hop://tcrn.ch/nIW:Q:
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So How Can This Work For A Merchant?
Unfortunately, not as simple as “merchants should nego>ate beoer”:
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Daily Deals Industry Factors
Low margin businesses face much greater risks running a daily deal:
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Daily Deals Execu>on Factors
Daily deals can be profitable if they aoract new and repeat business:
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Purng It All Together
Higher margin business + nego>ate terms + execute well:
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Daily Deals Success Factors
๏ For Merchants
-‐ Nego,ate beXer terms with deal providers
-‐ Make sure daily deals is right for your business
๏ For Merchants & Providers
-‐ AXract new customers with daily deals
-‐ Make sure new customers return
-‐ Recruit these new customers as brand ambassadors
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Mobile Marke>ng CRM
1) Build a mobile subscriber database
2) Mone>ze database through interac>ve mobile communica>on campaigns
IVR
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Time To Invest In Mobile Is Now
Source: Forrester
Which describes your mobile strategy?
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Time To Invest In Mobile Is Now
Source: Forrester
What kind of investment in mobile do you foresee in 2011?
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Time To Invest In Mobile Is Now
Source: Forrester
What do you feel are top uses for mobile?
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Mobile and Daily Deals
๏ ABract new customers with daily deals
Vet daily deal sign ups against ac>ve subscriber list
No>fy current customers of alterna>ve promo>ons
๏ Make sure new customers return
Capture mobile subscribers upon deal sign up
Capture mobile subscribers upon purchase
๏ Recruit these new customers as brand ambassadors
Run “bring a friend” campaigns for new subscribers
Drive online brand equity via interac>ve campaigns
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Case Study: Gelato Spot
Success to date:
๏ Had customers opt-‐in for mobile subscriber list when they used daily deal vouchers
๏ 80% of these customers remained on list aler three months
๏ Mobile coupon pitches gemng highest redemp,on rate for any other medium
Next steps:
๏ Encourage new customers to return with their friends
๏ Run campaigns geared toward brand value instead of coupon purchases
Source: ClickZ MarkeAng News
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Key Takeaways
For Merchants:
๏ Perform due diligence to make sure daily deal right for you
๏ Drive new and repeat business
๏ Adopt a life,me value perspec,ve
For Daily Deals Providers:
๏ Not all revenue is good revenue
๏ Encourage merchants to think beyond the campaign
๏ Differen,ate brand with innova,ve technology solu,ons
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Any Ques>ons?
For more informa,on visit www.msgme.com
Or contact us directly: marke,[email protected]
More industry informa,on available on our blog @ blog.msgme.com
Case studies are available @ clicky.me/msgmecs
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