Good EveningAlex WhitesideCurrently enrolled in final year of BIS degree, For the past 8 months working at a financial services company called YourShare.com.au, and have been exposing them to social media through Facebook, Twitter and Blogs. Most recently have been involved in redesigning their website to improve communication to customers.
In today’s world, how do we get this minimum number of customers? We could put an ad in the paper, Shop-a-dockets, or we could use: Social Media, and this what will be covered tonight.
Security : forgery for coupons
No upfront costs: only pay for the customers you getTargeted, i.e. Female buys a hair salon package and shares with her friends.Brand Awareness: brand name is being shared through social media for freeCustomers..: cold rock (bring along two friends who don’t have coupons so they don’t have to go alone)…Limit: for example, you advertise at 50% off you can cut at any time.
In the GFC,Groupon became one of the fastest growing companies in north america
Groupon takes a 50% cut from all sales.This deal resulted near, $137,500 and that’s just one city in America. They service near 50 cities worldwide.
Google are no competing with GrouponHave you noticed the increase of place pages in organic search results and a search map
Group BuyingHow and Why it works Alex Whiteside Final Year StudentBachelor of Internet Science and Technology (Internet Commerce)University of Wollongong
What is Group Buying? Group buying, also known as collective buying, offers products and services at significantly reduced prices on the condition that a minimum number of buyers would make the purchase.
How it works? Each day an item is featured and communicated through social media and email newsletters. High priced items, sold at a discount Business owner sets the minimum/maximum number of coupons As a business can be guaranteed a minimum amount of customers they can set really low prices Customer pays upfront so they are locked into the deal Customers share deal around social media to ensure the deal reaches the minimum number Customer visits the merchant with pre-purchased coupon
Advantages over other Media Reach a large market with no upfront costs Can be targeted to a known demographic through social media The deal can go viral increasing brand awareness Customers may invite their friends (who may not have coupons) to come along while they redeem their coupon Easy to limit discounted sales, if necessary, not very easy with printed coupons Have a creative written up on your business at no cost Increase SEO (Search Engine Optimisation) for your website.
Would you turn down a $6 billion offer from Google?
Google’s $6B offer to Groupon Just before Christmas 2010, US Group buying leader groupon.com rejected a US 6 billion dollar offer from Google. Groupon has also entered AU market and has been forced to operate under different brand StarDeals.com.au due to trademark issues.
So, Google did it themselves Google have realised the future of online commerce. Google now dominate their paid advertising, and “Place” pages with local deals. Best of all, it’s free.
Spreets, a $40M Offer! Recently, in February 2010, Australian based group buying website Spreets.com.au sold to Yahoo7 for $40M – when only 10 months old.
The future of e-Commerce? Businesses now have a new medium to market and sell their products and services. Daily deal sites have changed the way we shop. Social media will have a big influence on the future of this industry.
Group Buying in Wollongong As of yet there have been no daily deals in Wollongong. Although, a website I run, SealTheDeal.com.au is focused towards operating daily deals in the local area.