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Webinar-Daily Deals and Mobile-Engagement Explained
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Webinar-Daily Deals and Mobile-Engagement Explained

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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.

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.

Published in Technology , Business
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  • 1. Msgme  Industry*  Insights*  Daily  Deals  And  Mobile  -­‐  Engagement  Explained  Kane  Russell,  VP  of  Marke,ngWaterfall  Mobile 1
  • 2. Waterfall  Mobile  and  the  Msgme  Pla:orm Waterfall  Mobile Msgme ๏ Founded  August  2005 ๏ Free  trial:  www.msgme.com ๏ Offices  in  SFO  (HQ),  NYC  &  Aus,n ๏ API  suite:  developer.msgme.com ๏ Backed  by  Vista  Equity  Partners   ๏ Custom  applica,on  development ๏ Cross-­‐channel  mobile  &  social  CRM  via  SMS,   ๏ Short  code  provisioning,  cer,fica,on   MMS,  QR  Codes,  IVR,  Facebook  &  TwiXer &  audit  management 2
  • 3. Objec>ves๏ 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 3
  • 4. Daily  Deals  -­‐  “Hot” All  Summer/Fall  2011  Headlines 4
  • 5. Daily  Deals  -­‐  “Not” All  Summer/Fall  2011  Headlines 5
  • 6. What’s  Affec>ng  Revenue?   2010  -­‐  2011  Groupon  Revenue  Es>mates $90 $89 $75 $81 $76 $60 $62Millions  of  Dollars $53 $55 $45 $46 $30 $31 $29 $26 $15 $19 $21 $14 $11 $0 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 Month/Year Source:  Techcrunch 6
  • 7. Is  Deal  Fa>gue  A  Factor?   Daily  Deals  Consumer  Survey  Data  (n=943) Subscribed  to  daily  deals 86% Subscribed  to  Groupon  &  Living  Social 72% Only  buy  from  Groupon 41% Subscribed  to  at  least  3  providers 36% Been  subscribed  more  than  1  year 20% Now  opening  fewer  or  none  of  offers 74% Will  buy  fewer  deals  than  have  in  past 68% Source:  Local  Offer  Network  EsAmates 7
  • 8. Daily  Deals  Industry  Revenue  Projec>ons US  Group  Buying/Daily  Deals  Market   INDUSTRY  REVENUE  (GROSS) in  billions  of  dollars $2.67 $1.12 2010 2011 Source:  Local  Offer  Network  EsAmates 8
  • 9. Daily  Deals  Industry  Offers  Growth US  Group  Buying/Daily  Deals  Market TOTAL  OFFERS  PUBLISHED 40,000 39,993 30,000 20,000 22,163 19,676 10,000 14,462 6,895 2010  Q1 2010  Q2 2010  Q3 2010  Q4 2011  Q1  (E) Source:  Local  Offer  Network  EsAmates 9
  • 10. Economics  of  Daily  Deals Daily  Deals  Service  Providers Before During Ajer Deal  DayConsumers Merchants 10
  • 11. 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 11
  • 12. 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 12
  • 13. 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 13
  • 14. An  Example  Daily  Deal  Promo>onAccording  to  terms  from  Techcrunch  “Stop  The  Hate,”  hop://tcrn.ch/nIW:Q: 14
  • 15. So  How  Can  This  Work  For  A  Merchant?Unfortunately,  not  as  simple  as  “merchants  should  nego>ate  beoer”: 15
  • 16. Daily  Deals  Industry  FactorsLow  margin  businesses  face  much  greater  risks  running  a  daily  deal: 16
  • 17. Daily  Deals  Execu>on  FactorsDaily  deals  can  be  profitable  if  they  aoract  new  and  repeat  business: 17
  • 18. Purng  It  All  TogetherHigher  margin  business  +  nego>ate  terms  +  execute  well: 18
  • 19. 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 19
  • 20. Mobile  Marke>ng  CRM1)    Build  a  mobile  subscriber  database 2)  Mone>ze  database   through  interac>ve  mobile   communica>on  campaigns IVR 20
  • 21. Time  To  Invest  In  Mobile  Is  NowWhich  describes  your  mobile  strategy?   Source:  Forrester 21
  • 22. Time  To  Invest  In  Mobile  Is  NowWhat  kind  of  investment  in  mobile  do  you  foresee  in  2011?   Source:  Forrester 22
  • 23. Time  To  Invest  In  Mobile  Is  Now What  do  you  feel  are  top  uses  for  mobile?   Source:  Forrester 23
  • 24. 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 24
  • 25. Case  Study:  Gelato  SpotSuccess  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  mediumNext  steps:๏ Encourage  new  customers  to  return  with  their   friends๏ Run  campaigns  geared  toward  brand  value   instead  of  coupon  purchases Source:  ClickZ  MarkeAng  News 25
  • 26. Key  TakeawaysFor  Merchants: For  Daily  Deals  Providers:๏ Perform  due  diligence  to  make   ๏ Not  all  revenue  is  good  revenue sure  daily  deal  right  for  you ๏ Encourage  merchants  to  think  ๏ Drive  new  and  repeat  business beyond  the  campaign๏ Adopt  a  life,me  value   ๏ Differen,ate  brand  with   perspec,ve innova,ve  technology  solu,ons 26
  • 27. Any  Ques>ons? For  more  informa,on  visit  www.msgme.com More  industry  informa,on   available  on  our  blog  @   blog.msgme.com Case  studies  are  available  @   clicky.me/msgmecs Or  contact  us  directly:  marke,ng@waterfallmobile.com 27