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Using Social Commerce/Group Buying websites for Art Organisations

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Jane Hogg will share details of Audiences East Scotland's recent research on social group buying, looking at whether sites such as Groupon, LivingSocial and Itison can harness the power of these segments to deliver new revenue and increased audience growth.

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Using Social Commerce/Group Buying websites for Art Organisations

  1. 1. <ul><li>Mozart to Manicures – Can Social buying generate new audiences? </li></ul>
  2. 2. Background <ul><li>Audiences East Scotland – part of the audience development network in Scotland </li></ul><ul><li>11 members </li></ul><ul><li>Refocused business plan with key target segments </li></ul><ul><li>Partners drive project work supported by Karen Steel/Jane Hogg </li></ul>
  3. 4. Social Selling and group buying - definition <ul><li>‘ a form of e-commerce where the emphasis is on social media platforms to promote social interaction and buying’. </li></ul><ul><li>Significant growth in group buying – Groupon, LivingSocial, deal of the day and ITISON </li></ul><ul><li>Perfect combination of personal recommends + discount = value for money and reduced risk. </li></ul>
  4. 6. How it Works - buyers <ul><li>Buyer – joins deal site and gets offers. </li></ul><ul><li>Buys and then recommends to friends via FB. </li></ul><ul><li>Rewarded with free deals if friends purchase. </li></ul>
  5. 7. How it works - sellers <ul><li>Develop your deal </li></ul><ul><li>Agree the discount and number of deals </li></ul><ul><li>Negotiate your commission to group buying site </li></ul><ul><li>Issue deal and wait (24hours) </li></ul><ul><li>Redeem vouchers from customers </li></ul>
  6. 8. How it works – the sites <ul><li>Develop the brand and the website </li></ul><ul><li>On-line marketing to grow the database </li></ul><ul><li>Fresh approach to selling </li></ul><ul><li>Earn your money from commission </li></ul>
  7. 9. GROUPON ITISON LIVINGSOCIAL Launched 2009. Launched 2010. Launched 2010. 500,000 + subscribers 80,000 + subscribers in SCOTLAND (2010). N/A 50% commission for every voucher redeemed 20% commission for every voucher redeemed 40% commission for every voucher redeemed Minimum number to be purchased to activate deal. No minimum number No minimum number Offers 1 deal per city per day. Offers 1 to 3 deals per city per day Offers 1 deal per city per day. Only pays you for vouchers that are redeemed. Pays you for all vouchers bought including those unredeemed. Pays you for all vouchers bought including those unredeemed. Discount on vouchers ranges from 50 – 80%. Discount on vouchers varies but the minimum is 51%. Discount is on average 50%. Only provides you with the codes of the vouchers which have been bought. Provides notification of vouchers that have been bought and your purchaser demographics. Only provides the names of the customers with the codes of the vouchers which have been bought. Can provide limited terms and conditions which the consumer may not be aware of until post purchase. Provides comprehensive terms and conditions to the consumer. N/A Covers EDINBURGH, GLASGOW, ABERDEEN and DUNDEE. Covers EDINBURGH, GLASGOW and DUNDEE. Covers EDINBURGH, GLASGOW, ABERDEEN and DUNDEE. Users do not provide personal information and interests at time of sign up. Users provide personal information and interests at time of sign up. Users do not provide personal information and interest
  8. 10. Developments <ul><li>Google Offers beta version + exposure via Google ads </li></ul><ul><li>Facebook deals – but suspended test. </li></ul><ul><li>Google developing aggregated sites in larger markets (Asia) </li></ul>
  9. 13. New audiences? <ul><li>Pittsburgh, USA 2010 </li></ul><ul><li>The Pittsburgh Chamber Music Society used Groupon to offer gift certificates </li></ul><ul><li>350 Sold – 60% new users </li></ul><ul><li>DCA, Dundee 2011 </li></ul><ul><li>Cinema ticket for £2.50 – 58% discount </li></ul><ul><li>569 deals purchased – increased DCA FB likes by 161 and 22 Tweets </li></ul>
  10. 14. The Advantages <ul><li>Attracts new audiences </li></ul><ul><li>For a price sensitive segment this approach reduces the risks </li></ul><ul><li>Arts/culture sectors can sell a social experience </li></ul>
  11. 15. <ul><li>Significant exposure to your brand even if they don’t buy the deal – FB likes, Tweets and web hits </li></ul><ul><li>Could change perceptions – a fresh eye on the features and benefits </li></ul><ul><li>Generates some revenue and secondary spend – bar and cafe </li></ul>
  12. 16. The disadvantages <ul><li>Do your maths – promotional costs include the discount and the commission. </li></ul><ul><li>Create a segment hooked on discounts and not willing to pay full-price? </li></ul><ul><li>Social buying sites keep their data close to their chest – you must have a process in place for collecting customer records. </li></ul><ul><li>Risk that people see Groupon etc as Spam </li></ul>
  13. 18. <ul><li>Price transparency – don’t fool the customer they are savvy. </li></ul><ul><li>Consumer can ask questions and post comments on your level of service - be aware! </li></ul>
  14. 19. Our Top 10 Tips <ul><li>Do the maths - ROI </li></ul><ul><li>What’s your strategy for developing this group – take a long term view not a short one. </li></ul><ul><li>Remember the “social side” </li></ul><ul><li>Limit the number of deals </li></ul><ul><li>Choose the promotional date carefully </li></ul>
  15. 20. <ul><li>Be wary of signing an exclusivity agreement </li></ul><ul><li>Clear T&C’s for the customer </li></ul><ul><li>Don’t sell people short – they will check before buying. </li></ul><ul><li>Understand your payment terms </li></ul><ul><li>Brief the sales team and collecting customer data must be a priority. </li></ul>
  16. 21. AES Social Buying Project <ul><li>Let’s try it……….. </li></ul>
  17. 22. We want to….. <ul><li>See how effective social buying is at attracting new or lapsed audiences? </li></ul><ul><li>Can we shape deals to appeal to our target segments? </li></ul><ul><li>Can we include a non-ticketed cultural activity? </li></ul><ul><li>Collect robust financial information from AES participants that outlines costs v benefits </li></ul>
  18. 23. <ul><li>Test against other discount routes – FB? </li></ul><ul><li>Undertake some research to look at motivation and experience </li></ul><ul><li>Develop social buying cohort and a strategy for repeat purchase </li></ul><ul><li>Share our information so we can all learn </li></ul>

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