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    Thepowerofonlinedeals 111004103445-phpapp01 Thepowerofonlinedeals 111004103445-phpapp01 Document Transcript

    • The Power of Online DealsA Perspective on Group Deals<br />Groupon Business Model<br />The business model provides deals to the customers from vendors and also acts as advertising tool for local businesses. So the two keywords “Deal” and “Advertising” combined as “Dealvertising” as name for this model. The key value lies in the ~50%* commission for Groupon and ‘No Cure, No Pay’ customer acquisition for merchant. <br /> <br />The above Amsterdam example clearly explains the benefits & costs for both Groupon and Merchant. The benefits for Groupon are Commission on sales, Revenue, Customer acquisition by good deals sources and the costs are Sales, Deal creation, Advertising, Hosting. This is with respect to one deal. <br />The Benefits for local merchant are Zero advertising cost, Acquisition of new customers, Acquisition of repeat customers, High capacity utilization, Free online advertising and the costs are value discounts. <br />Overview of Market <br />The Addressable market is huge ($133Bn in US alone) which is why players are following the bucks.<br />
      • Amazon invested $175Mn in LivingSocial
      • 1 deal on LivingSocial for an Amazon gift cards was sold 1Mn times that is 500K for LivingSocial and 500K for Amazon just in one day
      • Facebook is developing Facebook Deals
      • Local business can offer you deals when you check into their place on Facebook
      Segments that are mainly contributing to the local deals are:<br /> <br />Coupon value and its discount value in different segments:<br />Future Outlook<br /> <br />The market will expand from local to national businesses in future in deals sourcing. In future the deals will be presented according to communities. Customers will be segmented according to their ages and preferences. This will attract loyal customers, traditional coupons will be replaced by Checkin or Automatic redemptions.<br />In terms of technological revolution the local deals will utilize Local, Mobile, Social forces to promote business. <br /> <br />Do you want to run and own daily deal software online? Please contact us and avail the group buying software for free. Hurry up!<br />