LSS'10: Perry Evans Refining the Blunt Instrument of Groupon

Refining the GroupOn “Blunt Instrument”Local Social SummitNovember 18, 2010

Topics
The Daily Deal Phenomenon
Small Business Viewpoint
Daily Deals: Fast Forward
Local Media Playbook

Straw Poll
Which best describes your view of Daily Deals?
It’s an over-hyped model that is great for desperate times, but it’s not sustainable
It’s a foundational shift, that is a BIG part of the future of local shopping

Daily Deal Phenomenon
Gross Revenue pacing at ~$1B, $2B 2011
GroupOn fastest growth tech company, ever
$600M from a few thousand local SMB’s
150-200 daily deal sites, 400+ deals/day
Every local media co entering in some form
Scaling internationally
40K+ businesses in deal distribution queue
15+ startups aggregating deals

The Success Formula
Struck a chord of pent-up consumer desire
Get out again, without the expense of 2008
Hip to save, remove the embarrassment of coupons
“Group” key to concept/brand, now tangential
Struck a chord of SMB local lead frustration
Complexity & mediocrity of media and search
Zero risk model
Perfect storm of timing (economy, social) + brand

SMALL BUSINESS VIEWPOINT

SMB Love Fest?

No Customer List
Deep Margin Cut
Drive By Customer
Lead Generation
Success
Pre-paid Customers
Zero Risk
Quantity
& Timing Control
SMB Viewpoint
We Love This
We Hate This

Deal Design: Refinement, Complexity, Noise

DAILY DEALS: FAST FORWARD

SMB Social Marketing & Deals
Consumers follow businesses for special treatment
Deals/customer special events as mainstream social participation
Emerging picture:
Brand/conversationalists (edge)
Lead marketing (scale)
Value-added intermediation (mainstream)
RazorFish October 2009 Study

Key Shifts in Process

Deals Morph with Mobile & Social: Live Social Marketing
Promotion Use Case Expansion
Casual offers: enticements to visit
Events & activity announcements
Social offers: friends/neighbor behavior
Return visit loyalty
Networked appointment bookings
Real Time, Any Time: Yield Management
Live publishing
Mobile search & personalized discovery

Deal Distribution: Silo > Ubiquity
Feed Distribution to Maps, Search, Social, LBS Partners
API/Dev Programs
Live Search Tags
Live Display Feed/Ads
Daily Deal Campaigns
API: Consumer Apps/Sites

Self-serve Aims for Mainstream
GroupOn
Facebook Deals
Google Places Offers
Foursquare
Yelp
Twitter?
Closely ;)
Dashboard
Remote Control

The Big Ideas
Pre-paid purchase model could be foundational
Live social marketing can evolve to yield management for local.
Offer content is a new shopping content layer, akin to Reviews.

Local Media Playbook?
Zero in on Social Promotion
Package & Simplify Distribution
Instigate the SMB Social Graph
Value-added Aggregation of Local Offers.
Search Tags. Live Offer Display. Website Widget.
Package to Your Strengths.

Thank You!
Perry Evans
Closely, Inc.
perry.evans@closely.com
Twitter: @perryevans
Mobile: +303-550-1205

http://www.closely.com	135
http://closely.com	57

LSS'10: Perry Evans Refining the Blunt Instrument of Groupon

by Local Social Summit

Accessibility

Categories

Upload Details

Usage Rights

2 Embeds 192

Statistics